Trans-Asia sets $10-M oil, gas search activity

A $10-million oil and gas exploration activity will be undertaken by Trans-Asia Oil and Energy Development Corp. in southwestern Palawan.

Company officials said they have filed for a geophysical survey and exploration contract (GSEC) with the Department of Energy (DOE) covering the Bancaoan basin not far from Cliff Head-1 exploration well.

Cliff Head-1 is an offshore drilling site in Palawan, also being explored by Trans-Asia Oil under GSEC 91.

Philip Rimando, Trans-Asia Oil exploration manager, said the field shows a high potential for oil and natural gas as it is located not far from the gas-rich Malampaya site of Shell Exploration Philippines BV (Spex).

The Malampaya is estimated to have gas reserves capable of generating 3,000-megawatts of electricity.

He added that another advantage of the new drilling site is the location, which is a shallow area. Infrastructure and cost of production is cheaper as compared to the Wildebeest offshore prospect handled by Unocal of the US.

Meanwhile, Trans-Asia Oil officials said the company has joined a consortium working on a $1.85-billion offshore oil prospect near the Sulu Sea, near the Malaysian border.

Leading the consortium is Arco Philippines Inc. while the other members are the Malaysian Mining Corp. and Preussag-Energie of Germany. Arco, a subsidiary of Atlantic Richfields Corp., controls 45 percent of the consortium while Preussag-Energie controls 25 percent and Malaysian Mining, 15 percent.

The remaining 15-percent stake is shared by Filipino companies. These are: Philex Mining Corp., Anglo-Philippines Oil and Mining Corp., Philodrill Corp., Basic Consolidated Inc., Seafront Resources Corp., Phoenix Energy Corp., San Jose Oil Co., Vulcan Industrial and Mining Corp., Petrofields Corp., Oriental Petroleum and Minerals Corp., Universal Robina Corp., and South Petroleum and Exploration Inc.