4 groups eye seismic test contracts in Reed Bank

MANILA, Philippines - The government is in the process of selecting international contractors to conduct seismic tests at the Reed Bank basin which include the disputed Kalayaan group of islands.

Official data show that the Department of Energy (DOE) has already come up with a shortlist of four international contractors for the 2D seismic survey.

The shortlist includes PGS Asia Pacific (Singapore) through its representative Nick Newham, CGG Veritas (Singapore) through Dominic Boitier, Fugro Geo Team AS of Norway through Armat Jani Girsang and Geraldine Geo Survey Ltd. of the UK represented by Cliff Whatrup.

Sources at the DOE said the program is merely a data gathering process to identify potential reserves in these areas.

The DOE noted that the program, expected to cost P75 million, will specifically be utilized for the so-called Philippine national continental shelf delimitation project.

“The provision of services to acquire and process new 2D seismic data, gravity and magnetic data in the Reed Bank and Kalayaan Island Group will be for the extended continental shelf (ECS) project submission to the United Nations Convention on the Law of the Seas,” the document said.

The DOE sources declined to elaborate on the project details as this may entail another controversy on the disputed territory.

The Reed Bank basin measures about 71,000 square kilometers in area and located about 250 kilometers west of Palawan. The DOE earlier estimated that total resources in the basin is around 440 million barrels of oil.

Forum Energy Plc of the UK has a pending application to convert its GSEC (geophysical survey and exploration contract) 101 at the Reed Bank basin into a service contract (SC).

But it was learned that the DOE has not been acting on Forum’s application fearing it may conflict with the existing joint marine seismic undertaking (JMSU) involving China, Vietnam and the Philippines.

JMSU, a tripartite agreement signed on March 2005, calls for a joint research of petroleum resource potential in the South China Sea.

The agreement lapsed in July last year and since then, the three countries are still mum on what to do with the JMSU. Sources said the Philippine government is being careful not to affect relationship with the two nations.

The Kalayaan Island group, located at the South China Sea, is part of the disputed islands.

“The survey is expected to commence in the first quarter for a period of four to six weeks. Bidder shall require and process approximately 760 line kilometers of new 2D seismic data, gravity and magnetic and bathymetric data,” the DOE said.

The DOE will use the data gathered from the program exclusively for the Philippine ECS project.

It also pointed out that the data will not be made available for licensing to oil and gas exploration and production companies.

According to the DOE, the bidders shall conduct the seismic acquisition with the following parameters such as shot interval of 37.5 meters and depth of six meters, among others.

Based on the DOE data, there would be two representatives from the department on board the seismic vessel for at least two weeks all throughout the duration of the seismic survey.

The bidders shall also provide the department a weekly status report.

The bidders are required to submit their proposals to the department’s Bids and Awards Committee on or before Dec. 18.