Australian firm eyes oil drill in Palawan




The Manila Times

Corporate News

AUSTRALIAN firm Sacgasco, operating as Nido Petroleum in the Philippines, said it is planning to get a drilling rig in early 2023 with a view to conduct an extended well test on the revitalization of the old Cadlao oil field covered by Service Contract (SC) 6B in the Palawan basin. In a statement on Wednesday, the Department of Trade and Industry said that Sacgasco’s successful test would lead to the redevelopment of the Cadlao oil field in Palawan. This will be followed with a plan to drill the Nandino Prospect, through SC 54A, and to conduct an extended well test as the basis for more fully developing a discovery at Nandino. According to Sacgasco, the initial investments for the oil projects in SC 6B and SC 54A are $15 million each for the drilling and testing of oil production with a follow-up investment of between $10 and $50 million for each project. It is also looking into the status of SC 14C2, which has the potential for the redevelopment of the West Linapacan oil field. “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,” Gary Jeffery, Sacgasco managing director, said. The government prioritizes the equilibrium price for energy and assures continued support for foreign investments as the Board of Investments, with endorsement from the Department of Energy, guarantees enhanced incentives focused on energyrelated projects to achieve efficiency, cost reduction, ensure continuous supply of petroleum products and enhance environmental protection.