Oil exploration investments reach $200 Million

Manila, Philippines - Dec 7, 2005

The Philippines secured up to $200 million worth of investments in oil exploration and production activities this year, according to an energy official.

Eduardo Manalac, President of Philippine National Oil Co. (PNOC), said these investments involve the development of a total 6.87 million hectares of possible oil reserves.

Mañalac said that 11 oil and gas exploration and production contracts have already been awarded this year. This is significantly higher than the four contracts with about $40 million worth of investments in 2004.

In 2002, the country signed only two exploration contracts and was able to raise only between $1.5 million to $7 million in investments.

For the period 2001 to 2004, nine wells were drilled with a total depth of 9,621 meters. The country was able to produce oil in various areas such as Malampaya, Galoc, West Linapacan, Cadlao, and Matinloc in Palawan.

Mañalac said Southwest Palawan has proven oil and gas reserves while Eastern Palawan and Sulu Sea have near similar oil/gas geology as in Malaysia, Brunei and Indonesia.

The Philippines has 16 sedimentary basins with a combined area of over 700,000 square kilometers. Mañalac said there were studies showing hydrocarbon resource potential larger than previously projected. The total recoverable resources have been estimated at over 8.9 billion barrels of fuel oil equivalent. Of this figure, 57 percent accounts for natural gas reserves, 41 percent oil reserves and two percent condensate.

The government has assured that exploration firms will be required to adhere to strictest safety standards to protect the environment and the people in the area, as mandated in the contract with the Department of Energy.

Condensed from Philippine Star

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