Japan, Kuwait firms to explore for oil In Tanon Strait

The Department of Energy has approved the agreement made between Japan Petroleum Exploration Co., Ltd. and Kuwait Foreign Petroleum Exploration Co. involving oil and gas exploration in the Tañon Strait.

Kuwait Petroleum, Kuwait's arm in exploration and development of small oil and gas reserves in foreign countries, has acquired 35 percent interest in the block from the operator JAPEX, which controls 65 percent.

Energy Secretary Raphael Lotilla, in a press release welcomed the entry of KUFPEC as it partners with JAPEX to develop the country's indigenous energy resources. He said he is pleased the company has taken interest in the Philippines as it expands its operations worldwide.

Kuwait Petroleum is engaged in exploration, development, and production of crude and natural gas. It has operations in South Africa, Indonesia, and Tunisia.

In the Philippines, Kuwait Petroleum and JAPEX's contract with the DOE provides for seven-year exploration rights over Tañon Strait. Once the reserve is proven to be of commercial quantity, the contractors are given another 25 years for production period. - Wenna A. Berondo