ExxonMobil Phils plans new wells

MANILA, Philippines - ExxonMobil Exploration and Production Philippines B.V., an affiliate of US-based oil exploration giant ExxonMobil Corp., may consider drilling new wells after completing the exploratory wells for its fourth well Babendil-1 in offshore South Sulu Sea this month.

Energy undersecretary Ramon Oca said if everything goes according to plan, ExxonMobil is confident that it would be able to finish the drilling of the fourth well in the latter part of September.

“They hope to complete within the month if there are no technical problems. It’s safe to say they will finish drilling within the month,” Oca said.

ExxonMobil started drilling the Babendil-1 early last month after completing the third well, Palendag-1A.

ExxonMobil, whose headquarters are located in Texas, is the world’s largest publicly-traded international oil and gas company.

Based on this drilling program, ExxonMobil will drill Babendil-1 to a total depth of 4,531 meters (14,865 feet) using the drilling rig West Aquarius.

These drillings are part of ExxonMobil’s Service Contract 56, which includes the gas-rich Sandakan Basin and covers an area of 8,200 square kilometers.

ExxonMobil had already spent around $400 million for the drilling of the four wells (Babendil-1 , Palendag-1-A, Palendag-1 and Dabakan-1.)

The company had decided to push through with the drilling of Babendil-1 in the first week of August even without the participation of Mitra Energy Ltd., one of the consortium partners in SC 56.

“Mitra Energy has elected not to participate in the Babendil-1 well,” the company said.

ExxonMobil holds a 50-percent stake in and operates SC 56. Mitra Energy (Philippines) Ltd holds 25 percent while BHP Billiton (International Exploration Pty Ltd) owns the remaining 25 percent.

Oca said Mitra Energy may not have been able to raise funding for the fourth well, estimated to cost $100 million.

“They may have some arrangement with ExxonMobil for that. They will have some sharing,” he said.

Energy Secretary Rene Almendras earlier said the government is finding the data from ExxonMobil exploration as “ very useful.”