MANILA, Philippines - More exploration activities are expected in the country’s upstream oil and petroleum sector this year, a ranking energy official said.
Last year, two wells have been drilled and one ongoing in Cebu. For (this) year, between six to nine wells are prognosed to be drilled,” Department of Energy (DOE) Undersecretary Ramon Allan Oca told reporters.
The DOE earlier targeted 10 to 12 oil and petroleum well drillings last year.
However, most projects were pushed back due to the tight market for drill rigs, which are being contracted by large global firms amid high fuel prices that make upstream energy projects more profitable.
But Oca said drilling works in the country will be robust this year.
In November, upstream oil firms Cadlao Development Co. Ltd. and VenturOil Philippines Inc. allotted $47 million to drill two oil production wells next year that will bring the Cadlao oil field in Northwest Palawan to commercial operations.
The Cadlao field previously produced up to 11 million barrels of oil back in the 1980s before it was plugged in 1991.
Australia’s Nido Petroleum Ltd. earlier committed to drill one well for Service Contract 63, which covers 1.067 million hectares in offshore Northwest Palawan.
The Philippines is underexplored compared with its Southeast Asian neighbors, which are benefiting from robust investments in the upstream energy sector.
The DOE is pursuing energy independence and sustainability through the development of indigenous energy resources like coal, petroleum and natural gas.
To date, there are 27 service contracts in the Philippines involving Shell Philippines Exploration B.V. and Nido Petroleum. However, only the Malampaya and Galoc oil fields are in regular production.
The Philippines produces only 6,000 barrels of oil daily, way below the demand of around 300,000 barrels per day, DOE data showed.