The Brunei Times today reported that two members of the consortium, Philodrill Corporation and South China Resources, had completed a “deed of assignment” to Tap Oil, subject to the approval of the Department of Energy.

“The acquisition of a significant interest and operatorship in Service Contract 41 forms part of Tap's strategy to establish a new area of focus in oil and gas rich areas of South East Asia," XFN-Asia quoted South China Resources saying.

It was not stated how much Tap Oil's acquisition was worth.

The consortium will be drilling for oil in the Sandakan basin in the South China Sea, covering an area of about 5000 square kilometres.

XFN-Asia said Philodrill has a 3.398% interest in the Sandakan basin project, while South China has a 1.09% stake.

In July, Tap announced its first move into the Philippines as it took over operatorship and acquired a 58% interest in Service Contract 41, an area of about 5000 square kilometres, with water depths ranging from 200m to 2000m.