The Energy Department assured that Shell Philippines Exploration BV remains keen on exploration opportunities in the country despite its decision to quit a block near its Malampaya natural gas field off northwest Palawan.
Mr Jay Layug energy undersecretary said that "Shell has expressed to the DoE its continued interest in exploration opportunities in the Philippines and will bid for new areas."
Mr Layug said that Spex's withdrawal from service contract 54B, which includes the Pawikan oil and gas prospect, was part of the company’s risk management strategy. The government is offering 15 oil and gas areas for exploration and development in the latest contract auction.
He added that "In as much as Shell is looking for more exploration opportunities in the Philippines and beyond, Shell is consolidating its exploration plans and pooling financial and technical resources for development of oil and gas in the Philippines."
Spex is operator of the Malampaya gas to power project in northwest Palawan and holds a 45% stake in the project west of Palawan. Spex also owns a 55% stake in SC 60 located at the northernmost Sulu Sea.
Nido Petroleum Philippines Pty Limited, Spex's partner in SC 54B, announced the company's decision to quit SC 54B but did not disclose the reason for its withdrawal.
Mr Jocot de Dios CEO of Nido said that "We remain optimistic on the prospectivity of the block especially by the potential exploration upside identified in the large Pawikan Lead to the south of the Gindara 1 location and only 10 kilometers from the producing Nido A and B fields."
He added that "The recently acquired Pawikan 2D seismic survey is designed to mature this lead to prospect status and a potential future drilling opportunity. Preliminary seismic data from the Pawikan survey is encouraging."
The Energy Department approved the entry of Spex to SC 54B in January 2011, paving the way for the drilling of the Gindara well. Spex contributed 75% of the Gindara 1 exploration well and seismic costs.
(Sourced from www.manilastandardtoday.com)
