MANILA, Philippines - The consortium of Shell Philippines Exploration B.V. (SPEX), South China Resources Inc. and Kuwait Foreign Petroleum Co., is planning to start drilling operations in northeast Palawan within the year.
“SPEX is presently preparing to drill its commitment well on Service Contract (SC) 60 by the second half of this year,” industry sources said.
SPEX holds 55 percent of the contract while KUFPEC and SCR own 30 percent and 15 percent, respectively.
Based on the drilling plan submitted to the Department of Energy (DOE), the group will conduct the seismic and exploration work in a relatively unexplored area of 1.8 million hectares in northeast Palawan.
In January 2006, the Energy Department allowed the consortium to convert its geophysical survey and exploration contract (GSEC 99) to SC 60.
The contract includes a 25-year production term in the event of a commercial oil discovery.
Last year, SPEX officials said they have completed the seismic survey for SC 60.
“The survey enhances understanding the prospectivity of the license area and will determine the need to further explore in the bloc,” SPEX said earlier.
SPEX operates the Malampaya deep water gas-to-power project, the country’s largest natural gas find. KUFPEC is a wholly-owned subsidiary of the, state-owned Kuwait Petroleum Corp.while SCR is a Philippine company involved in, among others, hydrocarbon exploration.
Last year, SPEX completed the first 3D seismic survey as part of a work commitment under SC 60 to explore for oil and gas within the one million-hectare acreage in northeast Palawan .