ACE Exenor firms up for Palawan drilling

By Maria Romero – February 3, 2021 02:30 AM
from tribune.net.ph

ACE Enexor Inc., the exploration arm of Ayala-led AC Energy, is eyeing to seal the deal with potential partners to drill exploratory wells at an offshore area in Palawan by the first half of the year.

“I hope we can (list and sign contract with partners) in the first half of this year (because) we need to firm up our drilling plans,” AC Energy president Eric T. Francia told reporters.

“The middle of this year would be a critical period because if we want to get to our target, which is the drilling for the first or second half of 2022, then we need to firm up all of our plans (including) our partnerships. Typically, it’s one year in advance,” he added.

In November last year, ACE Enexor kicked off its search for a well-heeled and experienced partner as part of the preparatory works for the planned oil and gas exploration venture under Service Contract (SC) 55 at an offshore block in Northwest Palawan.

SC 55 development
Francia noted that ACE Enexor will be focusing on the development in SC 55, which was “partly the reason” why the company dropped its stake in SC 6.

Its subsidiary Palawan55 Exploration & Production Corp., the operator of SC 55, committed to drill one exploratory well within the first two years after the Department of Energy (DoE) confirmed SC 55’s entry into the appraisal period.

Palawan55 holds a 75 percent interest in the gas prospect, while the remaining 25 percent is under Pryce Gases Inc.

Palawan55 is 75 percent owned by ACE Enexor and 25 percent owned by AC Energy Philippines Inc.

Palawan55 currently completes permitting requirements, including the procurement of drilling equipment and deployment of the drilling team.

According to the DoE, the SC 55, a petroleum block straddling deep waters in the Palawan basin, is estimated to have 2.2 trillion cubic feet of gas. It covers an area of 9,880 square kilometers.

The middle of this year would be a critical period because if we want to get to our target, then we need to firm up all of our plans.

Based on the initial interpretation of seismic data, prospects at the block will potentially yield gas.

Interest-holders are, thus, looking forward to pitching in for the country’s future gas requirements.