PXP Energy, partners advancing drilling in Peru petroleum prospect

Published February 17, 2020, 12:00 AM

by manilabulletin_admin

By Myrna M. Velasco

The subsidiary of Pangilinan-led firm PXP Energy Corporation along with its partners are now advancing on well drilling at an offshore petroleum block straddling Peru basin.

In a disclosure to the Philippine Stock Exchange, PXP Energy said the operator of the block, Australian firm Karoon Energy Ltd. is already moving forward at drilling for Marina-1 exploration well in Block Z-38 at Tumbes basin.

PXP Energy’s subsidiary Pitkin Petroleum has 25-percent interest in the Peru petroleum exploration venture. Karoon Energy’s subsidiary KEI Sucursal del Peru has 40-percent stake, hence, it holds operatorship rights in the block. The other partner is British firm Tullow Oil with 35-percent shareholdings.

“The 13 3/8 inch casing has been run with the forward plan to drill the primary targets of the Tumbes and Cardalitos formations where multiple target levels have been identified over a 1,400-meter interval,” a Karoon Energy disclosure-report has stipulated.

It further indicated that “the shallower sections of La Cruz and Mal Pelo formations were encountered down to 1,654m MD (measured depth).”

The block operator emphasized that based on preliminary logging results “the well encountered water bearing sands and some gas shows in thin beds which are not considered to be commercial.”

Karoon Energy further noted “the information obtained from the shallow sections provides insights similar into deeper waters,” although it qualified that “La Cruz and Mal Pelo results are independent of the deeper primary targets.”

The firm added that operationally, “the well is progressing to plan,” and it is on time and on budget, “with no safety or environmental incidents.”

The block operator likewise assessed that the total drilling operation will take 30 days and it will approximately reach 2,994-meter TVDSS or true vertical depth sub-sea.

While its ventures overseas have been moving forward, PXP Energy’s exploration and drilling activities in the Philippines have been practically stalled – primarily at its Service Contract 72 or the Recto Bank prospect because of what remains as unresolved diplomatic tussle with China at the West Philippine Sea.

The company has batted for lifting of the moratorium on petroleum exploration ventures at the areas being enmeshed in the diplomatic dispute, but this has yet to be acted upon by government. (MMV)