Philippines. US-based ExxonMobil Exploration and Production Philippines B.V. is estimated to invest US$ 500 million for its exploration and drilling activities in the country, particularly in the Sulu area.
Energy Secretary Jose Ibazeta said ExxonMobil's estimated investment will cover service contract 56, which includes the Sandakan Basin.
Service contract 56 has a total area of 8,200 square kilometers and located about 900 kilometers southwest of Manila and 200 kilometers northwest of Bongao, the capital of Tawi-Tawi province.
ExxonMobil is moving on with the drilling of the third well to continue its appraisal of the reserves of the Sandakan Basin.
"My estimate, they will easily be putting in US$ 500 million for their work program or just to explore. It takes a lot of money to bring up oil," Ibazeta told reporters at the sidelines of the launch of Shell Eco-Marathon Asia at the Global City, Fort Bonifacio in Taguig.
Asked if ExxonMobil eyes drilling more wells, Ibazeta declined to further give details.
ExxonMobil has already drilled two wells at a cost of US$ 100 million per well. It has started preparatory work for the drilling of the third well.
The semi-submersible Drilling Rig West Aquarius, according to government reports, spudded the Palendag-1 well last June 4 but it plugged and abandoned the well "after encountering drilling difficulties."
It has since moved the West Aquarius drill rig to a new drilling location called Palendag-1A which is adjacent to the Palendag-1. The drilling rig arrived at the Sulu Sea around the end of May.
West Aquarius is the same semi-submersible drilling rig, including her anchor handling tugs and support and supply vessels FOS (floating, offloading and storage vessel) Universe Sea Turbot, Sea Pollock and Highland Guide, which ExxonMobil used during the drilling of the first two exploratory wells.
ExxonMobil is the contractor of service contract 56. Other members of the consortium includes Mitra Energy Ltd., controlling 25 percent and BHP Billiton International Exploration Pty Ltd., also has 25 percent stake.
The Department of Energy (DOE) said service contract 56 is estimated to contain about 750 million barrels of oil equivalent, which can supply the domestic market for a period of seven years.
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