PNOC-EC completes first stage of seismic data in South China Sea

PNOC-Exploration Corp. (PNOC-EC) has completed the first stage of the seismic data acquisition in the South China Sea.

The company said the data gathering is in line with the tripartite agreement signed last year with China National Offshore Oil Co. (CNOOC) and Vietnam Oil and Gas Corp. (VOGC).

On Nov. 19, the consortium developing the South China Sea area will mark the arrival of the seismic vessel Nan Hai 502 at PNOC-EC’s Energy Supply Base (ESB) in Batangas.

Under the joint marine seismic undertaking (JMSU) agreement signed in Manila last March 14, the three companies agreed to jointly acquire geoscientific data to assess the petroleum resource potential of particular areas in the South China Sea.

The landmark agreement will help transform a previous area of conflict, specifically the Spratlys Island, into an acreage for possible cooperation and benefits among the three countries.

The JMSU covers a three-year joint research by the Philippine National Oil Co. (PNOC) and CNOOC of the petroleum resource potential in certain areas of the South China Sea.

The study is a pre-exploration program solely to collect, process and analyze seismic data. No drilling or development is covered by the study.

Under President Arroyo’s five-point energy independence agenda, the Philippines will actively develop its indigenous oil and gas resources using PNOC as its lead agency to form strategic alliances with other countries like China.

The JMSU is the fruit of long years of discussion between the Philippines and China on the South China Sea.

It is the first concrete step after ASEAN and China adopted the ASEAN-China Declaration on the Conduct of Parties in the South China Sea signed in Phnom Penh in November 2002. Discussions between PNOC and CNOOC intensified after CNOOC president Fu Cheng Yu visited Manila in late 2003.

In 2003, PNOC-EC, an oil and gas exploration subsidiary of PNOC, spearheaded the discussions with CNOOC and other state-run oil exploration firms in the region such as Pertamina of Indonesia and Petronas of Malaysia.

Formed in 1982, CNOOC is a state-owned oil company of People’s Republic of China (PRC).

The company is authorized by the government to undertake the exclusive rights and overall responsibilities to jointly explore and develop oil and gas resources in offshore China in cooperation with international oil and gas companies.

CNOOC’s headquarters is located in Beijing and has a total employment of 21,000. It is one of the largest oil companies and the dominant offshore producer in China.

CNOOC is moving also into the mid and downstream business and towards enhancing its overseas presence to develop into an integrated international energy company.

The firm conducts oil and gas exploration and development through CNOOC Ltd., a publicly-listed company in the New York and Hong Kong Stock Exchanges.