Although the well did not encounter commercial hydrocarbon accumulation, it proved the existence of a working petroleum system in the area.
Energy Secretary Mario V. Tiaoqui had observed that the discovery of commercial oil resources on SC 41 would benefit the Philippines economically and lessen the country’s dependence on imported crude oil.
Unocal is one of the world’s leading independent oil and gas production companies, with its largest operations in Asia. In addition, Unocal is also a leading producer of geothermal power, supplying its host countries, the Philippines and Indonesia, over 1,000 megawatts of clean, renewable power. Its local subsidiary, Philippine Geothermal, Inc. (PGI), partners with the state-owned National Power Corp. to supply over 15 percent of the electricity requirements of Luzon grid.
Meanwhile, Unocal Thailand, in a move to help Thailand cut its oil imports, has submitted an application for commercial crude oil development by the company for the first time in the Gulf of Thailand.
After successfully exploring for petroleum in concession blocks north of the Erawan gas field in the Gulf of Thailand and discovering evidence of an economic volume of crude oil, the company has decided to proceed with the development of these oil and gas deposits. The wells encountered an average of 200 feet of hydrocarbon-bearing pay. Six drill-stem tests in five of the wells averaged 1,050 barrels of oil per day.
"We are very pleased to announce this commercial development plan for crude oil. We are doing everything we can to help Thailand and the region lessen their dependence on imported crude," said Randy Howard, Unocal vice president for international energy operations.
The crude oil production would be the first in Thailand by Unocal, which has produced natural gas and condensate since 1981. Unocal plans to install a new oil-processing platform adjacent to its existing gas-processing facilities, as well as a crude oil storage tanker. For the entire project, 10 platforms will be installed. The cost of developing these oil fields is expected to be about $270 million over the next six years.