PNOC-EC eyes new exploration projects
State-run Philippine National Oil Co.-Exploration Corp. (PNOC-EC) is eyeing to have a more active role in harnessing the country’s oil, gas and coal resources as the government pushes for more exploration and development of our indigenous energy resources.
In a virtual webinar last week, PNOC-EC president and CEO Rozzano Briguez said the company is looking forward to successful exploration in new petroleum and coal areas.
In the petroleum sector, it is pursuing new oil and gas discoveries aimed to augment the declining Malampaya reserves.
Briguez said this includes a new onshore gas field possibly in Service Contract (SC) 37 in the Cagayan Basin.
“PNOC EC plans to drill an exploration well in SC 37. If it turns out to be a commercial discovery, PNOC EC will prepare a gas to power project, similar to San Antonio, with a power plant development,” he said.
The Philippines started producing natural gas in the San Antonio Gas Field in 1995 until 2008.
Now, the country’s main source of natural gas is the Malampaya gas field located in offshore Palawan, which started operating in 2001.
Briguez also said PNOC EC intends to pursue collaboration with other institutions and companies to further study Philippine sedimentary basins to assess their petroleum potential given new information and advances in technology.
“The main objective is to open up new areas for exploration by ensuring that the country’s geologic sedimentary basins are well-studied and properly marketed to possible investors,” he said.
PNOC-EC hopes to pursue exploration in new service contracts, including areas in Cotabato, Cagayan, East Palawan and the West Philippine Sea, and other prospective areas being offered by Department of Energy (DOE) under the Philippine Conventional Energy Contracting Program (PCECP).
As for its prospects under force majeure, Briguez said the company is also looking forward to the resolution of the maritime disputes between China and the Philippines as this will lead to the resumption of petroleum operations for SC 58, SC 59 and SC 75 and boost exploration and development of hydrocarbon resources in the vast West Philippine Sea.
For the coal segment, the PNOC-EC chief will prioritize projects with higher projected revenue or fastest return on investment (ROI).
“Thus, we will be focusing on the development and production of mines in coal operating contract (COC) 41, and the development of the coal mine-mouth power plant project in COC 122,” Briguez said.
COC 41 is within the Malangas Coal Reservation in Zamboanga Sibugay, with the Lumbog Coal Project covering an area of about 170 hectares with a mineable reserve of 1.4 million metric tons (MT), with a mine life of eight years. The project has a projected 200,000 tons annual production.
Located in the Province of Isabela, COC 122 has proven reserves of over million MT of lignite coal in a minable area covering about 2,000 hectares, which is enough to fuel a 100 megawatts (MW) mine-mouth power plant for 25 years.