PNOC-EC eyes drilling activities off northwest Palawan in Q4 2021

The Philippine National Oil Company-Exploration Corp. (PNOC-EC) targets to start drilling activities in Service Contract (SC) 57 situated offshore northwest Palawan in the fourth quarter of 2021 to tap a potential energy source.

This projection was made after President Rodrigo Duterte lifted the moratorium on oil exploration in the disputed West Philippine Sea.

"With the lifting of the moratorium, part of our plan is centered on the two service contracts that we have. One is within the disputed area and one is well inside northwest Palawan. That is SC 57 and SC 59," PNOC-EC President and CEO Rozzano Briguez said during a Senate budget hearing.

"As to the question of what's the plan of the PNOC-EC, it's really now to continue with the 3D seismic study on SC 59 as well as farming out of SC 57," he added. "We also plan on proceeding to other areas also in which we have interest, and that's SC 75 and SC 58."

Briguez said SC 57 has the most potential in terms of producing indigenous oil and gas for the country.

"It's northwest of the current Malampaya platform. It's in Calamian," he said.

Its size is about two-thirds of Malampaya which currently supplies 20% of the power demand in the country, according to Briguez.

"The timeline is at the fourth quarter next year we can start drilling," he said. "If we start drilling by 2021, hopefully, in five year's time, we will go into production and that's 2026."

Senate committee on energy chairperson Sherwin Gatchalian welcomed the development as good news. He stressed that the Philippines needs to find another energy source before the Malampaya reserves run out.

"I really believe that area has tremendous potential," the senator said.

Briguez said the PNOC-EC is in the process of farming the project out to proponents and that the terms of reference are currently being validated by the Department of Energy (DOE).

He added that they also held a meeting with the DOE and the Western Command on Monday for security arrangements in their plan to pursue exploration in SC 57 and SC 59.

The PNOC-EC is a government-owned and controlled corporation which was incorporated in 1976. It is mandated to lead the exploration, development, and production of the country's oil, gas, and coal resources.—LDF, GMA News