"They are talking to Petronas. PNOC is saying that they are close to making a deal to be able to drill those prospects offshore Mindoro," Energy Undersecretary Eduardo Mañalac told The STAR.
Mañalac said the deal between PNOC-EC and Petronas will boost the country’s drilling program for this year. "What we really need is more drilling," he said.
PNOC-EC, is one of the subsidiaries of the state-run Philippine National Oil Co. (PNOC) Petronas is also state-owned.
PNOC-EC president Rufino Bomasang said in an earlier interview that the company is already finalizing talks with a foreign exploration company.
"The negotiation with a foreign exploration company is already in its final stage. It will put in capital in our offshore Mindoro projects, Cherry and Tablas," Bomasang said.
PNOC-EC, a publicly-listed oil and gas exploration firm, has been scouting for strategic partners for its exploration contract in offshore Mindoro.
In August 2002, PNOC-EC completed its seismic survey on an area covering some 960 square kilometers in the Mindoro area.
Since the start of the year, the company has been intensifying its operation in oil, gas and coal exploration in preparation for its planned shares offering slated within the year.
The exploration of Cherry and Tablas will cost $5 to $10 million for every well.
Early this year, PNOC-EC urged Petronas, an oil conglomerate of Malaysia, to renew its interest in seven oil and gas prospects in Cotabato. Last year, EC had plans of pursuing a P220-million third exploratory well in the Cotabato basin in Mindanao.
The third well, Gansing I, is located in the Cotabato basin. The drilling project is covered by geophysical survey and exploration contract (GSEC) 73.
Since 1999, the EC had already drilled two onshore wells in the area namely: Sultan-sa-Barongis (SSB) 1 and SSB-2. Based on EC record, an open-hole test conducted at SSB-1 yielded a stabilized natural gas flow rate of 186,000 standard cubic feet per day (SCFPD). SSB-2 also confirmed the presence of natural gas with a measured flow rate of about 270,000 SCFPD.