Far East: Philippines
August 2000 Vol. 221 No. 8 International Outlook FAR EAST Philippines Players in the country’s upstream oil industry include the Philippine
FAR EASTPhilippinesPlayers in the countrys upstream oil industry include the Philippine National Oil Co. (PNOC) and several foreign operators active under licenses. The country presently produces less than 1,000 bopd and about 250 MMcfd gas, relying on net oil imports of nearly 370,000 bpd. Geothermal and coal supply most of its present electrical power needs. Thus, there is major impetus for ongoing development of the 3.4-Tcf, 120-MMbbl, deepwater Malampaya-Camago complex for first gas in late 2001. Exploration. Wood Mackenzie reported four Non-exclusive Geophysical Permits (NGPs) awarded in 1999. Pacrim Energy NL got two areas in Central Luzon and South Cebu; Trans Asia gained an area in Tanon Strait, off West Batangas; and South China Resource was awarded an NGP off NE Palawan. As of January 2000, there were seven Service Contracts (SCs) and 16 Geophysical Survey and Exploration Contracts (GSECs) active. For license changes, Texaco acquired 45% in Malampaya-Camago, and PNOC got 10% of the project through a farm-in to SC 38. Nido Petroleum (formerly SOCDET) farmed-in for 17.5% to SC 14A/B (Nido and Matinloc fields, respectively, which produced nearly two-thirds of the countrys crude). PNOC assumed operatorship of GSEC 84 from Stirling Resources, allowing PNOC to explore the Fuga Island prospect. Petroz withdrew from SC 42 Coron North and Nido. And in June 2000, Unocal farmed in for 15% on deepwater Sulu Sea SC 41B, with a well scheduled this year. Three exploration wells were drilled last year, down one from 1998. PNOC discovered gas on GSEC 73A in Cotabajo basin, Mindanao, with Sultan Sa Barongis 1 and 2 wildcat and appraisal; a 60-MW power plant could provide a market by 2003. And Shell added a fourth dry hole to its program with Destacado 2 on SC 38, although further appraisal may be coming. In June 2000, PNOC drilled a dry hole with Fuga-1 with a land rig in Cagayan basin, North Luzon. And at mid-year, Trans Asia had spudded San Isidro SX-1 on GSEC 93 in the Visayan basin. Development. Oil production averaged 859 bopd in 1999, up from the previous three years but a far cry from 9,000-bopd levels of 1992/1993. Matinloc and North Matinloc contributed more than 700 bopd of this; Nido produced intermittently. And about 250 MMcfd gas was produced from PNOCs San Antonio field. As WM notes, lacking any further commercial discoveries, future liquids production depends almost entirely on Malampaya-Camago, from which 400 MMcfd and 25,000 bpd are estimated by 2007, but at a total project cost of some $4.5 billion. The field complex is located 40 mi NW of the northern tip of Palawan, in up to 2,800-ft water. Gas sales agreements were signed in 1998 to land gas at Tabango, Batangas City, for power generation; gas power plants are being built. The field development involves subsea completions to a concrete gravity substructure (CGS) with 385,000-bbl condensate storage. Gas will be exported via a 24-in., 310-mi pipeline around the south of Mindoro. Condensate will be exported to a CALM buoy for shuttle tanker offloading. On June 1, the 91,000-mt CGS was towed from Subic Bay to the site, ballasted and submerged to the seabed in 140-ft water. The pipelay vessel Solitaire has been contracted to lay the 24-in. line. Shell is committed to drill five more subsea wells this year. The wells will produce to a subsea manifold in 2,800-ft water, through flowlines, to the shallow-water production platform on the CGS, from which dry gas will be exported to an onshore gas plant for further treating. Three power plants are being built at Santa Rita (2) and Ilijan, Batangas. |
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