PNOC-EC allots big chunk of budget for exploration
BY LENIE LECTURA – OCTOBER 17, 2022
from Business Mirror
THE Philippine National Oil Co.-Exploration Corp. (PNOC-EC) is earmarking a budget of P10.68 billion for next year.
Of the amount, P6.9 billion will be utilized to pursue exploration activities related to the service contracts awarded to it by the government while P1.85 billion would be for coal exploration and development. The remaining P1.29 billion is meant for its continued participation in the Service Contract (SC) 38, covering the Malampaya gas field.
PNOC-EC said it sold 116.74 billion cubic feet (BCF) and 3.11 million barrels of condensate (mmbls) in 2021, resulting to revenues amounting to P3.3 billion from its 10-percent interest in SC 38.
From January to June this year, PNOC-EC said it was able to sell 58.86 BCF of natural gas and 1.45 mmbls of condensate.
For 2023, it is expecting a target sales volume of 76.7 BCF of natural gas and 2.1mmbls of condensate. The P1.293-billion budget, it said, will help fund its “active participation in Malampaya consortium.”
PNOC-EC’s awarded petroleum service contracts, meanwhile, include SC-37 in Cagayan, SC 57 Calamian, SC 58 West Calamian, SC 59 West Balabac, and SC 74 Linapacan.
SC 37 is currently undergoing well drilling and testing.
“Hopefully, we can get drilling started by late 2023 or early 2024. If the well becomes a gas discovery then we can develop that within 3 to 5 years,” said PNOC Vice President for management services division Candido M. Magsombol.
Magsombol said SC 57 will undergo another seismic survey.
“We need to conduct a 3D seismic survey; it’s the same with SC 58 and SC 59,” added the official. “So, these are more exploration programs and we need at least three to four years to develop if there is confirmed oil or gas.”
For SC 74, Magsombol said the state firm is looking to develop a marginal oil discovery.
“We just need to look into the potential of joint development with nearby field,” he said. “This is the bigger West Linacapan field. Since it is marginal, we need to pursue a joint development.”
The PNOC EC official said there are security issues involving some of the service contracts. For instance, he said SC 58 and SC 59 are part of the waters enclosed by the 9-dashed line claim. SC 75, which PNOC has 35 percent, is one of the service contracts that was suspended.
For coal, PNOC-EC said it will continue mine development of Coal Operating Contract (COC) 41 Mine-4, conduct exploration drilling in COC 204 Malangas and evaluate new domestic and overseas areas.
