ManilaTimes-Oct 12
AN “old” oilfield in Palawan that could begin production next year has helped gain renewed confidence and strong interest from foreign investors in the country’s upstream oil and gas sector, President Ferdinand “Bongbong” Marcos Jr. said on Tuesday.The Department of Energy allowed Nido Petroleum Philippines Pty. Ltd., the technical operator/operator of service contract (SC) 6B, to proceed with the site survey of its drilling locations in its service contract areas by the last quarter of this year. Marcos said the activities will pave the way for the drilling of two wells, one exploration and one appraisal, by the first half of 2023. For SC 6B, he added, the appraisal well for the Cadlao oil field could lead to early oil production toward the second half of 2023 while the recoverable volumes expected from the oil field are 5 to 6 million barrels of oil. Cadlao produced over 11 million barrels in the early 1990s. The operation of this oil field was taken over by Nido Petroleum from Forum Energy Philippines Corp. in February 2022 to fund the 100 percent development costs, which include drilling, extended well tests and subsequent development of the oil field. “The government’s commitment to preserve and maintain the investment incentives for service contractors under Presidential Decree (PD) 87 has been met with renewed confidence and strong interest by local and foreign investors in the oil and gas sector,” Marcos said. PD 87 or the “Oil Exploration and Development Act of 1972,” issued by Marcos’ father, former president Ferdinand E. Marcos Sr., provides that the government is entitled to the equivalent of 60 percent of net proceeds from the sale of petroleum. In his first State of the Nation Address in July 2022, Marcos said he wanted to incentivize investments in the upstream oil and gas industry, “particularly in the area close to Malampaya.” Read more at: https://www.manilatimes.net/2022/10/12/news/old-oil-field-stirs-investors-interest/1861959
