Sacgasco of Australia, operating as Nido Petroleum in the Philippines, said Wednesday it plans to deploy a drilling rig to conduct an extended well test on the prospects of reviving the Cadlao oilfield by early 2023.
“We see massive opportunities to develop oil and gas in the Philippines territory. Our highest desire is to explore frontier areas with large potential near the Malampaya Gas Field that supplies natural gas to Manila and surrounding areas. The size of the prospects in this area [SC 58] are such that successful drilling would dramatically change the Philippines’ energy picture for the better,” said Sacgasco managing director Gary Jeffery.
The Cadlao oilfield is covered by Service Contract 6B in the Palawan basin. A successful test would lead to the redevelopment of area.
The proposed exploration of the oilfield is expected to set off a series of tests on the Nandino Prospect, which is covered by SC 54A in offshore Palawan.
Sacgasco said the initial investments on the oil projects in SC 6B and SC54A could amount to $15 million each for the drilling and testing of oil production, with a follow-up investment of $10 million to 50 million for each project.
Sacgasco is also involved in SC 14C2, which includes potential the redevelopment of the West Linapacan oilfield.
“Our vision is well-aligned with the new administration’s goal of increasing the level of energy production in the Philippines as the country’s energy demand far exceeds reliable supply as stated by President Marcos during his SONA,” Jeffery said.
“We can help the Philippines address its energy challenge and in the most successful scenario, the country can even become a net exporter of energy,” he said.
Jeffery said his company would push through with a visit this month to meet with local partners, the Department of Energy and other stakeholders, to accelerate plans for offshore oil developments in the country.
Sacgasco representatives were initially part of the business delegation to the Philippines in August, but had to delay their plans for a few weeks because of COVID-19.
The Department of Trade and Industry’s overseas trade office in Sydney said it was ready to provide any form of assistance to help the Australian energy firm.
