Group to spend an initial $5M for RP exploration project

A consortium composed of Shell Philippines Exploration B.V (SPEX), Kuwait Foreign Petroleum Co. (KUFPEC) Philippines Onshore B.V., and South China Resources Inc. will spend $3 million to $5 million for its initial seismic exploration in southern Philippines, a company official said on Friday. SPEX managing director Facundo Roco said they hope to confirm by next year whether there are oil and gas reserves in the contract area. Earlier this year, the consortium said it will invest some P1.27 billion ($24 million) to explore gas and oil prospects in offshore Northeast Palawan. Northeast Palawan 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, the consortium committed a minimum of $24 million or about P1.27 billion for the project. About $2 million to $3 million will be spent for the seismic study alone. The consortium shall conduct, seismic and exploration work to find petroleum and optional exploration drilling within the first seven years. SPEX is the operator of the $4.5 billion Malampaya Deep Water Gas to Power Project in Northwest Palawan, the biggest investment so far in the country’s oil exploration sector. Kuwait Foreign Petroleum, meanwhile, is a wholly-owned subsidiary of the Kuwait Petroleum Corp., owned by the State of Kuwait. South China Resources is a Philippine company involved in hydrocarbon exploration. - GMANews.TV