Ayala-owned upstream petroleum firm ACE Enexor Inc. has kicked off its search for a deep-pocketed and technically experienced partner for its planned oil and gas exploration venture at an offshore block in Northwest Palawan.
“We’re beginning to explore, we’re still in the partner-search process. That’s still a work in progress,” ACE Enexor Chairman and CEO Eric T. Francia said when asked on the status of its negotiation for a
prospective tie-up with foreign investors.
Alongside that, he noted that the Ayala firm is also preparing for the targeted drilling of two wells at its Service Contract (SC) 55 – with the first one targeted in April 2022, based on the company’s work program approved by the Department of Energy.
“Part of our plan is to do an appraisal well, so we expect to do some drilling in our service concession area within the next two years. The team is preparing for that,” he said.
The Ayala executive emphasized “we have a commitment to drill one well there by April 2022.” The drilling of that appraisal well has been allocated with a budget of US$1,702,020.
Francia said their target to find gas at SC 55 is in keeping with the country’s goal to have a commercial-scale discovery that could replace the Malampaya gas field.
“That really motivates us as well to pursue a drilling program that could hopefully spur and encourage other industry players to also invest in exploration in the West Philippine Sea where there’s a lot of potential beyond Malampaya,” he stressed.
Francia opined that when it comes to upstream petroleum ventures, the Philippines is still at under-investment or fledgling state, hence, the Ayala group is also intending to do its share on that investment sphere.
“Given that Malampaya is expected to be declining, it’s expected to last only until late 2020s, and that’s potentially less than 10 years which is a short time,” he said; adding that while there are talks of liquefied natural gas (LNG) importation, “it would be good really for the Philippines to have our indigenous source of energy.”
And since gas is also considered the best match for renewable energy developments, Francia emphasized their oil and gas exploration underpins the energy investment trajectory that they have cast for the Ayala group.
“The opportunities are in renewables, but to complement renewables, ideally we should also have indigenous gas resource beyond Malampaya . So I think it’s still good, so you would be less dependent on imports and for energy security as well, it will be good to find that next indigenous source of gas,” he pointed out.
SC 55 is a petroleum block straddling deep waters in Palawan basin. It covers an area of 9,880 square kilometers.
As culled from the initial interpretation of seismic data, prospects at the block are seen to potentially yield mainly gas, hence, interest-holders are looking forward to pitch in for the country’s future gas requirements.