PNOC-EC to spend over P10 B for exploration ventures
By Myrna M. Velasco – October 19, 2022, 2:07 PM
from Manila Bulletin
State-run Philippine National Oil Company-Exploration Corporation (PNOC-EC) has earmarked over P10 billion worth of capital outlay to advance its oil and gas exploration and production (E&P) ventures, as well as coal mining prospects in Mindanao.
According to Candido M. Magsombol, vice president for Management Services Division of PNOC-EC, the company will be spending P1.293 billion next year for the continued operation and production at the Malampaya field; while P6.901 billion will be allotted for exploration and drilling activities at its other petroleum blocks.
Additionally, the state-run firm will be injecting P1.859 billion for exploration of indigenous coal resources on the sites covered by its coal operating contracts – primarily in Malangas and Zamboanga Sibugay blocks in Mindanao.
“For Malampaya, our target volume is 76 billion cubic feet and 2.1 million barrels of condensate,” he said, in reference to production prospects at the country’s commercial gas field for 2023.
The Service Contract (SC) 38 for Malampaya will expire on February 23, 2024, but there is a move of the consortium-members in the project to secure license extension from the government so the production life cycle of the field could be extended.
PNOC-EC is a minority shareholder in the Malampaya project; and its new partners in the venture are UC38 of businessman Dennis Uy; and Razon-led Prime Exploration Co. Ltd. which will soon take on the operatorship function at the gas field.
Magsombol emphasized that on the other petroleum exploration activities of the company, “we will conduct well drilling and well testing in Service Contract 37; seismic processing in Service Contract 67; and farm-out efforts in Service Contracts 57, 58 and 59.”
To farm out in the E&P investment space would entail that the company is looking for prospective partners that could acquire equity or interest held by PNOC-EC in the specified petroleum service contracts.
Out of the seven service contracts that are under PNOC-EC’s charge, it currently holds operatorship and 100-percent interest in three – these have been Service Contract 37 in Cagayan; as well as SC 57 in Calamian and SC 59 in West Balabac at Palawan basin.
On top of that, Magsombol asserted that “we also have contingent well drilling in SC 59 and SC 74; as well as geological and geophysical programs in new service areas.”
Beyond the line-up of its domestic oil and gas upstream petroleum investments, the PNOC-EC executive indicated that the company is similarly on the lookout for ‘overseas prospects’; although he has not named yet the offshore markets they have been setting their sights on.
