(Asia-Pacific) - The Philippine Department of Energy (DOE), Shell Philippines Exploration BV (SPEX), Kuwait Foreign Petroleum Exploration Co. (KUFPEC) Philippines (Onshore) BV, and South China Resources Inc. (SCR) have signed service contract no. 60 (SC 60) for oil and gas exploration in the area offshore Northeast Palawan.
The 1.08 million ha SC 60, converted from the geophysical survey and exploration contract 99 (GSEC-99), is one of the promising sites for petroleum exploration identified by the Philippine Petroleum Resource Assessment Project Study conducted by the Norwegian Agency for Development Cooperation (NORAD) and the DOE.
During the seven-year exploration period of SC 60, the consortium committed a minimum of $24 million for the project.
The consortium will conduct seismic and exploration work to find petroleum and optional exploration drilling within the contracted period.
SC 60 also includes a 25-year production term in the event of a commercial discovery of petroleum. SC 60 partnership is comprised of 55% stake by SPEX, 30% by KUFPEC, and 15% by SCR.
With the signing of SC 60, there are now 14 service contracts already signed by the DOE on behalf of the government since December 2004.
These service contracts involve a total of $193 million in financial investments committed to work programs for the exploration of oil and gas in the country.