Petronas to start drilling offshore Mindoro with PNOC

Petronas to start drilling offshore Mindoro with PNOC

Petroliam Nasional Bhd (Petronas) and joint venture partner Philippine National Oil Co. (PNOC) will invest some $22.5 million for initial drilling activity at an oil and gas prospect offshore Mindoro, discovery, the New Straits Times newspaper reported.

The paper quoted a Philippine government official as saying the activity is scheduled to start in the current quarter and run for 47 days, including 33 days of drilling and testing, plus 14 days for mobilization and demobilization.

“The water depth is about 160 meters, while the target depth is about 1,500 meters,” the official said.

The paper said the activity would cover the drilling of one exploration well and two appraisal wells, with the first batch of production expected by 2012.

Petronas Carigali Overseas Sdn Bhd, the investment arm of Petronas and PNOC’s listed subsidiary, PNOC-Exploration Corp. (PNOC-EC) holds Services Contract 47 (SC47), which allows the two companies to look for energy resources in the area. The Mindoro block was awarded to PNOC-EC and Petronas Carigali on January 10, 2005.

PNOC-EC has a 20 percent working interest in the project, while the balance 80 percent is held by Petronas Carigali.

SC47, has a seven-year exploration term.

($1= 3.50 ringgit)


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