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THE LOCAL exploration unit of global oil giant Exxon Mobil Corp. expects to complete drilling activities off Sulu in August, an official said.
Ian A. Fischer, managing director of ExxonMobil Exploration and Production Philippines B.V., told reporters drilling and exploration should take 60-90 days.
“We’re drilling now. We usually assume 60 to 90 days for our planning purposes, [and we should finish] somewhere [around August], depending on how things go. We’re very deliberate in how we approach drilling our wells and we don’t take any chances or risks and we’re not rushing,” said Mr. Fischer.
ExxonMobil is the contractor appointed by the government to hold Service Contract (SC) No. 56. The Sulu consortium includes Mitra Energy Ltd. and BHP Billiton International Exploration Pty. Ltd. The contract covers 8,200 square kilometers in Sulu Sea.
The Department of Energy (DoE) said in a statement the third well being drilled by ExxonMobil “is part of the department’s program to continue to encourage the development of the energy sector.”
Mr. Fischer said the company is not yet looking at getting other service contracts and is focusing on SC 56. “It’s very early in our exploration stage. We drill where we think it’s appropriate and if we have a rig available to drill with. For commercial operation, it’s going to take a long time to figure that out. You have to analyze a lot of data, assess a lot of factors and then see if we can make it a commercial operation,” said Mr. Fischer.
Energy Secretary Jose C. Ibazeta had said the company may invest about $500 million in the country. Mr. Fischer said investments would come in once exploration is deemed successful.
ExxonMobil will spend approximately $100 million in drilling its third well, Palendag-1, and to continue the appraising of the reserves of the Sandakan Basin. ExxonMobil had completed drilling of the first two wells called Dabakan-1 and Banduria-1, but data processing is still ongoing. -- Emilia Narni J. David
