MANILA, Philippines - State-owned PNOC-Exploration Corp. (PNOC-EC) and Australian oil exploration firm Nido Petroleum Ltd. will start the drilling in Service Contract (SC) 63 in offshore Southwest Palawan next year.
In a report to the Australian Stock Exchange, Nido said they expect to complete the seismic date interpretation and locate the areas where to drill the oil wells early next year.
“Nido is also working closely with PNOC-EC to plan for the drilling of a well in this block,” it added.
Nido said they have commissioned UK-based geology firm Midland Valley to help interpret the subsurface structure of the block, which is located in a 10,560-square kilometer area in offshore Palawan.
SC 63 was awarded to PNOC-EC, which acts as the field’s operator, and Nido through the Philippine Energy Contracting Round in 2006. Both firms have an equal 50 percent stake in the block.
The consortium acquired a 3,255-kilometer 2D seismic survey in an area called the East Sabina block in the SC in 2007.
In October last year, the group acquired the 754-square kilometer Kawayan 3D seismic survey, covering the area around the Aboabo A1-X gas discovery made by Phillips Petroleum Ltd. in 1981.
The well was reported to have flowed gas at an estimated rate of 50 million cubic feet per day on test.
PNOC-EC earlier reported that initial seismic interpretation identified several prospects and leads in the SC.
The company, however, indicated it would likely tap additional partners by selling a portion of its shares to help fund the block’s development.
“We’re still talking especially with potential partners on the percentage (of the farm-in agreement) especially who will be the operator,” PNOC-EC vice president Leocadio Ostrea said in an earlier interview.