sc 55

C 55 covers 9,000 sq.km.of the southwest Palawan basin, located on a regional oil and gas fairway that extends from the productive Borneo offshore region to the offshore production assets northwest of Palawan.

Otto the lead operator with an 85 percent working interest in SC 55. The seismic tests will satisfy Otto’s commitments under its work program for the current sub-phase of exploration of the block.

Earlier, Trans-Asia Oil and Energy Development Corp., which holds a 15-percent stake in the project, said they have already secured approval from the Department of Energy to conduct the survey.

TA Oil is the energy arm of the Phinma Group. The company continues to be active in several exploration projects, particularly in large and high-potential areas. At present, the company is represented in four service contracts.

“The Energy Department approved the SC 55 consortium’s request for substitution of a combined 2D/3D seismic program with minimum expenditures of $3 million for the one deepwater well with minimum expenditures of $3 million committed under the third sub-phase of the exploration period,” it said.

The Marantao prospect is estimated to contain 1,812 billion cubic feet of gas and 567 million barrels of oil. Seismic data was collected by various groups from 1970 to 1990, but no wells have been drilled. Otto Energy acquired its 85 percent interest in SC 55 in 2006, through the purchase of NorAsian Energy Ltd. Otto Energy was supposed to farm-out 60 percent of its interest in SC 55 to BHP Billiton Petroleum Pty Ltd. but negotiations fell through.

The consortium expects the seismic survey to be carried out and interpreted this year, with drilling to follow in 2010.