May 05, 2013

SC 55 consortium commits to Palawan drilling program

The consortium behind Service Contract (SC) 55 said it is committed to exploring and developing the offshore gas field in Southwest Palawan. “Certainly, all the joint venture partners are committed to delivering the Cinco well consistent with our service contract commitment,” Gregor McNab, CEO of consortium member Otto Energy Ltd., said in a teleconference.

Trans-Asia president Francisco Viray said in a text message that the company shares the same commitment with Australia’s Otto Energy, adding that BHP Billiton is not withdrawing from the project. Energy Secretary Carlos Jericho Petilla earlier said if the consortium is unable to fulfill its obligations by August 2013, the department may award the contract to other interested parties.

SC 55 is located near the Malampaya gas field in offshore Palawan. It includes the Cinco well but to date, no offshore drilling has occurred. In terms of potential resource, the DOE estimates SC 55 to contain some 2.2 trillion cubic feet of gas, at par with the Malampaya field that currently provides fuel to three key power plants in Luzon. Trans-Asia has a 6.82% stake in SC 55.