Billiton takes part in Sulu Sea oil search

MANILA, Philippines - Australian oil and mineral mining giant BHP Billiton (BHPB) will take part in Service Contract 56 (SC 56) in the South Sulu Sea, the Department of Energy (DOE) said.

The exploration unit of the world’s largest mining firm will join existing SC 56 contractors ExxonMobil Exploration and Production Philippines B.V. and Mitra Energy, both holding 50-percent equity in the project.

Mitra will assign half of its interest in SC 56 (25 percent) to BHPB.

According to the DOE, this will bring BHPB, the world’s largest integrated resources company, into the Philippine upstream sector, working alongside ExxonMobil, the world’s largest publicly-listed international oil and gas company.

The DOE said it is very pleased that companies of such high caliber and expertise recognize the potential of the Philippine oil and gas sector, and looks forward with keen anticipation to execution of the SC 56 commitments.

Drilling of the first commitment well, the DOE said, is scheduled to commence this September.

SC 56 is located 900 kilometers southwest of Manila, 200 kilometers northwest of the Bongao municipality and 65 kilometers from the town of Mapun in the province of Tawi Tawi of the Autonomous Region of Muslim Mindanao (ARMM).

The DOE said SC 56 is part of the Philippine government’s efforts to encourage investments in the energy sector leading to energy security for the country. The exploration phase will be undertaken at no cost to the country, with all risks borne by the contractors, ExxonMobil, Mitra and BHP Billiton.