DOE bares $72 million in investments for Palawan oil exploration

DOE bares $72 million in investments for Palawan oil exploration

By Junex Doronio
October 13, 2022

MANILA — Another good news was announced Thursday by the Department of Energy (DOE) saying around $72 million worth of investments will be poured into the country by Nido Petroleum Philippines Pty. Ltd. for oil explorations in Cadlao oil field in Palawan.

The DOE revealed that this development will also allow Nido Petroleum to drill two wells in the Palawan basin, one exploration, and one appraisal, by the first half of 2023.

“In Cadlao, they are undertaking extended production tests and the budget submitted for this is an additional $40 million. So, when they drill it, they will test it for a period of time to determine how to optimize future production and determine the more appropriate way in installing the permanent production facilities. So that’s $72 million for both contracts,” Energy Undersecretary Alessandro Sales said in a press briefing on Wednesday, October 12.

He added that the site survey is Nido Petroleum’s initial activity prior to drilling wells in the offshore area.

It was learned that the DOE allowed Nido Petroleum to proceed with an on-site survey for drilling locations under Service Contract 6B in the Palawan basin by the fourth quarter of 2022.

For his part, Energy Secretary Raphael Lotilla confirmed that the government is expecting the well in Cadlao to be drilled in the first half of 2023.

“This is just one step because this is not of course going to make a massive impact on the supply requirements of oil in the Philippines. But if this is going to be sustained then we are going to see the further development of the other service contracts in the country,” Lotilla said. (ai/mtvn)

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