MANILA, Philippines—The consortium operating Service Contract 55 off Palawan expects to drill an exploration well next year to test the prospects of the field estimated to contain 1.8 trillion cubic feet of gas and 567 million barrels of oil.
In a disclosure to the Philippine Stock Exchange, Trans-Asia Oil and Energy Development Corp. said the consortium had entered the fourth sub-phase of exploration and would start deepwater drilling by Aug. 5, 2012.
The SC 55 consortium is led by petroleum giant BHP Billiton, which has a 60 percent stake and which is the designated operator of the contract area.
Other members are Trans-Asia, which currently has a 6.82 percent participating interest and Australian firm Otto Energy Ltd., which has a 33.18 percent stake.
BHP Billiton acquired the 60-percent stake in SC 55 early this year. The stake acquisition will be effective following joint venture and regulatory approvals and by reimbursing Otto’s past costs.
BHP Billiton is also expected to fund one offshore deepwater well by 2012, with an option to drill a second exploration well in a subsequent phase by 2013.
“We are looking forward to continuing to work with BHP Billiton in SC 55 as we move into the drilling phase of exploration activities. The past 16 months has been a very busy period for Otto as we have acquired, processed and interpreted a large volume of seismic data to identify a portfolio of significant oil and gas prospects. We have benefited from the cooperation shown by our joint venture partner, Trans-Asia, and also BHP Billiton,” Otto Energy managing director Paul Moore said in a regulatory filing last May.
“We now look forward to participating in this exciting offshore deepwater exploration program, which will provide exposure for Otto’s shareholders to material exploration in highly prospective, large-structure opportunities,” Moore had said.