President Ferdinand Marcos Jr. on Tuesday announced that the Department of Energy (DOE) allowed Nido Petroleum Philippines Pty. Ltd., the technical operator/operator of Service Contract 6B, to proceed with the site survey of the Cadlao oil field by the last quarter.
Mr. Marcos said the government’s intent to maximize indigenous resources attracted strong interest from foreign investors in the Philippine upstream oil and gas sector.
“The government’s 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,” the President said.
The DOE allowed Nido Petroleum to proceed with the site survey of their drilling locations in their service contract areas. The activities will pave the way for drilling two wells – one exploration and one appraisal- by the first half of next year.
“For 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,” Marcos said.
Cadlao is an old oil field that was last produced in the early 1990s with over 11 million barrels.
The President also said he sees an opportunity in the upcoming on-site survey in the Cadlao oil field. He said the site has attracted “strong interest” from foreign investors in the country’s upstream oil and gas sector.
“The government’s 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,” the President, in a statement said.
The President, in the statement, also said “an early indication is that the DOE recently allowed the Nido Petroleum Philippines to proceed with the site survey of their drilling locations in their service contract areas
“The activities will pave the way for the drilling of 2 wells – 1 exploration and one appraisal, by the first half of next year. “While it is a first step, it signals the government’s intent to maximize indigenous resources and has attracted strong interest from foreign investors in the Philippine upstream oil and gas sector,” the President further said.
In his first State of the Nation address on July 25, Mr. Marcos said the government “will provide investment incentives by clarifying the uncertain policy in upstream gas, particularly in the area close to Malampaya.” Upstream refers to the exploration and production stages in the oil and gas industry. With Vince Lopez