Philippine National Oil Co. (PNOC) president Eduardo Mañalac, in a speech during the 8th ASCOPE Conference and Exhibition, said these investments would involve the development of a total 6.87 million hectares of possible oil reserves.
This year, Mañalac said they have already awarded 11 oil and gas exploration and production contracts, significantly higher than the four contracts signed in 2004 with about $40 million worth of investments last year.
In 2002, the country signed only two exploration contracts and was able to raise only between $1.5 million to $7 million in investments.
For the period 2001 to 2004, nine wells were drilled with a total depth of 9,621 meters. The country was able to produce oil in various areas such as Malampaya, Galoc, West Linapacan, Cadlao, and Matinloc in Palawan.
Mañalac said Southwest Palawan has proven oil and gas reserves while Eastern Palawan and Sulu Sea have been proven to be surrounded and near similar oil/gas geology as in Malaysia, Brunei and Indonesia.
The Philippines has 16 sedimentary basins representing an area of over 700,000 square kilometers. Mañalac said there were studies showing hydrocarbon resource potential larger than previously projected. The total recoverable resources have been estimated at over 8.9 billion barrels of fuel oil equivalent. Of this figure, 57 percent accounts for natural gas reserves, 41 percent oil reserves and two percent condensate.
"While natural gas represents the bulk of the resources, significant oil deposits also remain to be found," he said.
The government has assured that exploration firms will be required to adhere to strictest safety standards in conducting geological activities as mandated in the contract with the DOE to protect the environment and the people in the area.
As a normal standard operating procedure, the DOE and the exploration firms conduct consultation with the people in the different coastal towns and barangays. The consultations are aimed at educating the local residents and officials before any seismic survey is done.
For safety reasons, all fishing vessels, passenger ferries and commercial vessels are also requested to stay five kilometers away from the site to avoid damage to these vessels and fishing equipment.