PNOC-EC allotting Php10B for exploration activities

The Philippine National Oil Company – Exploration Corp. (PNOC-EC) is looking to spend Php 10 billion to accelerate its oil and gas exploration and production ventures, including coal mining prospects in Mindanao. 

In a report by the Manila Bulletin, PNOC-EC vice president for management services division Candido Magsombol said that the company will be spending Php 1.293 billion in 2023 for the continued operation and production in the Malampaya Gas field. 

Enrique Razon-led Prime Infastructure Capital Inc. recently acquired Shell Philippines Exploration B.V (SPEX) which holds 45% interest in the Malampaya. 

Magsombol said their target volume in Malampaya is 76 million cubic feet and 2.1 million barrels of condensate, referencing the production prospects in the gas field for 2023. 

Malampaya’s Service Contract (SC) 38 will expire in February 2023. There are currently talks within the consortium for a 15-year license extension to “arrest production decline.” 

PNOC-EC holds a 10% share in Malampaya. 

Meanwhile, PNOC will also be allotting Php 6.901 billion for its exploration and drilling activities in other petroleum blocks. 

Php 1.859 billion, meanwhile, will be budgeted for the exploration of indigenous coal resources within its coal operating contracts like Malangas and Zamboanga Sibugay blocks in Mindanao. 

Magsombol added that PNOC-EC will be conducting well-drilling and well-testing under SC 37 in Cagayan, and seismic processing under SC 67. Contingent well drilling will also be conducted in SC 59 and SC 74. 

PNOC-EC will also be looking for prospective partners that could acquire equity or interest in SC 57 in Calamian, SC 58, and SC 59 in West Balabac at the Palawan Basin. 

PNOC-EC earlier announced that it is looking to be the leading energy exploration and production company in the country by 2030.