President Ferdinand Marcos Jr. PHOTO FROM PALACE
MANILA, Philippines 鈥� President Ferdinand Marcos Jr. has announced that the Department of Energy (DOE) has already allowed a petroleum company to start surveying its drilling locations for exploration and appraisal at the Cadlao oil field in Palawan.
In a statement released by the Office of the Press Secretary (OPS) on Tuesday, Marcos said that the DOE allowed Nido Petroleum Philippines Pty. Ltd. to start the site survey in their service contract areas by the last quarter of 2022.
鈥淭he government鈥檚 commitment to preserve and maintain the investment incentives for service contractors under Presidential Decree 87 has been met with renewed confidence and strong interest by local and foreign investors in the oil and gas sector,鈥� he said in a statement.
鈥淎n early indication is that the Department of Energy (DOE) recently allowed the Nido Petroleum Philippines Pty. Ltd., the Technical Operator/Operator of Service Contract 6B to proceed with the site survey of their drilling locations in their service contract areas by the last quarter of this year,鈥� he added.
Marcos said this action may lead to oil production as early as the second half of 2023.
鈥淭he activities will pave the way for the drilling of 2 wells 鈥� 1 exploration and one appraisal, by the first half of next year,鈥� the Chief Executive noted.
鈥淔or SC 6B, the appraisal well for the Cadlao oil field could lead to early oil production towards the second half of 2023 while the recoverable volumes expected from the oil field are 5 to 6 million barrels of oil,鈥� he explained.
Just this September, Australian firm Sacgasco which operates Nido Petroleum said that they are eyeing more offshore oil projects in the country, noting that they plan to drill near the Malampaya gas field by early 2023.
This includes an extended well test in the Cadlao oilfield under Service Contract 6B, which would revitalize operations after it was discontinued in 1991.
READ: 听
Marcos said the move would help the country maximize its own oil resources, which could help mitigate the rising prices of oil products in the global market.
鈥淲hile it is a first step, it signals the Government鈥檚 intent to maximize indigenous resources and has attracted strong interest from foreign investors in the Philippine upstream oil and gas sector,鈥� he said.
鈥淐adlao is an old oil field that was last produced in the early 1990s with over 11 million barrels. The operatorship of this oil field was taken over by Nido Petroleum from Forum Energy Philippines Corporation (FEPC) in February 2022 to fund the 100 percent development costs, which include drilling, extended well tests, and subsequent development of the said oil field,鈥� he added.
Marcos鈥� announcement comes as motorists bear another oil price hike, particularly for diesel fuel which rose by around P6.50 per liter starting Tuesday. Consumer and activist groups have called on the President and his administration to suspend or reduce oil taxes 鈥� particularly the excise taxes brought by the Tax Reform for Acceleration and Inclusion (TRAIN) law, and the value-added tax.
RELATED STORIES:
听
Bayan hits admin for still not lowering oil taxes amid new round of price hike听