In a press release, Petronas said it and PNOC-EC are committed to “drill one exploratory well in the Mindoro Block with an option to either drill another exploratory well are also committed to conducting “geological and geophysical studies and a possible seismic survey in the Block”.
Furthermore, the partners have to complete their work program within two years. Anything beyond that and the onus is on the contractors to decide on the next course of action for the block.
According to a report in Dow Jones, PCOSB is “expected to invest some US$12.5 million” on the seismic and geological studies and the drilling of the exploration well in the block.
Speaking to the news agency Filipino energy secretary Vincent Perez said, “The new agreement has long been in the waiting. Now that the road has been paved clear, we look forward to the drilling of one of the most attractive exploration areas in the country.”
The president of the Philippine National Oil Co (PNOC) Eduardo Mañalac, speaking to the Philippine Star daily, revealed the US$12.5 million will be used by PCOSB to “drill four wells in seven years”.
“This will be an initial investment. It could go higher when they find hydrocarbon and oil reserves in the said service area,” said Mañalac.
PCOSB is the operator of the block and will hold an 80% stake. The balance is held by PNOC-ECC with the DOE supervising the development.
