meanwhile west of palawan -30tcf potential !, page-6

DoE grants one-year extension for west Palawan seismic survey By MYRNA M. VELASCO April 25, 2010, 11:25am

The request for one-year extension of exploration activities under Sub-Phase 3 of the oil and gas block in west Palawan under Service Contract 55 was granted by the Department of Energy.

In a disclosure to the Philippine Stock Exchange (PSE) by consortium member Trans-Asia Oil and Energy Development Corporation, it emphasized that ?the extension period will allow the consortium to complete a supplemental 1,800 sq km seismic program.? Trans-Asia holds 15-percent participating interest in SC 55.

Based on the initial assessment of reserves at the prospect area, it was indicated that the volume that can be extracted may be about five times the gas output of the Malampaya field.

The acquisition and interpretation of 954 kilometer 2D seismic data at SC 55 were completed about three years ago. These have been credited as fulfillment of the consortium?s work obligation under 2nd sub-phase of the exploration period.

An earlier approval given by the energy department on swapping of work commitments required SC 55 equity holders to start on its drilling program August this year; until the request for another year of extension on its exploration activities.

The previous drilling date in the work program submitted for SC 55 was August 2009; but the consortium batted for deferment of one year due to non-availability of suitable rig then.

Australian firm Otto Energy has been the operator of the SC 55 prospect, but it disclosed earlier plans of divesting majority of its interest to another Australian firm BHP Billiton. Otto Energy first sealed a deal with AustralAsian Energy Ltd. to form NorAsian Energy as corporate vehicle for the undertaking.

The Philippine government is aggressively promoting upstream investments in the oil and gas sector. Despite increasing capital flows, there have been nothing sizeable discovered yet that can potentially shore up the country?s oil and gas reserves.

Practically, after bringing the Malampaya field into commercial fruition in 2001, developments appeared to have reached standstill in the past decade; hence, the government?s eagerness to see the next gas field with a promise.

http://www.mb.com.ph/articles/254488/doe-grants-oneyear-extension-west-palawan-seismic-survey