Government-owned PNOC-Exploration Corporation (PNOC-EC) is in search of joint venture partners for an oil and gas exploration venture off the Calamian Islands in northern Palawan.
In its “Invitation to Farm-In” posted on its website, PNOC-EC identified the exploration site as Service Contract (SC) 57 or the Calamian/Northwest Palawan exploration block – a 7,120 square-kilometer exploration program about 50 kilometers northwest of Busuanga Island.
The Department of Energy (DOE) had defined a farm-in contract as a “transfer of rights and obligations agreement.”
PNOC-EC, which has owned 100% of the project since 2005, is now looking for a joint venture operator, which would hold a 40% stake and a joint venture partner with a 30% participating interest. The China National Offshore Oil Corporation, PNOC-EC’s Chinese counterpart, and Mitra Energy/Jadestone Energy farmed into SC57 in 2006, but was eventually mothballed.
The invitation is pursuant to Executive Order No. 80, series of 2019 and DOE Department Circular No. DC2020-02-0006. Under the circular, all minerals, petroleum, and other mineral oils owned by the state should be under full control and supervision of the government.
Interested third-party participants may submit their Letter of Intent until February 17, while the deadline for submission of proposals is on April 12.