The project is said to be worth around US$14.4 million and is expected to be concentrated around the island of Mindoro.

In a joint press conference held at the Malacanang Palace in Manila, President Arroyo stressed on the importance of the deal and what it means for her country. According to Arroyo, "[I have hope that] the drilling off the island of Mindoro will help boost the country's self-sufficiency in energy from the current level of about 53%."

Ms Arroyo was confident that such a deal between the two state-owned firms "should be another fruit of our efforts to develop our indigenous energy resources."

Malaysia's Prime Minister, Datuk Seri Abdullah Ahmad Badawi, who is on a two-day state visit said, "Malaysia welcomes the success in establishing cooperation between Petronas and PNOC. I hope the smart partnership would be able to create a new wealth for the Philippines in the area of oil and gas exploration."

The Philippines Energy Department confirmed that "the area offshore of Mindoro Island, located some 150 kilometres south of Manila, is the most attractive exploration acreage in terms of petroleum potential."