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Marcos: DOE cleared company to inspect Palawan’s Cadlao oilfield

President Ferdinand Marcos Jr. PALACE PHOTO

MANILA, Philippines – President Ferdinand Marcos Jr. announced that the Department of Energy (DOE) has already authorized an oil company to begin inspecting its drilling locations for exploration and appraisal of the Cadlao oilfield in Palawan .

In a statement released Tuesday by the Office of the Press Secretary (OPS), Marcos said the DOE has cleared Nido Petroleum Philippines Pty. ltd. begin site survey in their service contract areas by the last quarter of 2022.

“Government’s commitment to preserve and maintain investment incentives for service contractors under Presidential Decree 87 has been met with renewed confidence and keen interest by local and foreign investors in the oil and gas sector. gas,” he said in a statement.

“A first indication is that the Department of Energy (DOE) recently authorized Nido Petroleum Philippines Pty. Ltd., the technical operator/operator of the 6B service contract to conduct the site survey of their drill locations in their service contract areas by the last quarter of this year,” he added.

Marcos said this action could lead to oil production as early as the second half of 2023.

“The activities will pave the way for the drilling of 2 wells – 1 exploration and one appraisal, by the first half of next year,” noted the managing director.

“For SC 6B, the Cadlao oilfield appraisal well could lead to early oil production around the second half of 2023 when the expected recoverable volumes from the oilfield are 5 to 6 million barrels of oil,” said he explained.

Last September, Australian company Sacgasco, which operates Nido Petroleum, said it was considering more offshore oil projects in the country, noting that it planned to drill near the Malampaya gas field by early 2023.

This includes an extended well test in the Cadlao oilfield under the 6B service contract, which would revitalize operations after its shutdown in 1991.

READ: Australian firm seeks more oil projects near Malampaya

Marcos said the move would help the country maximize its own oil resources, which could help mitigate rising prices for petroleum products on the world market.

“While this is a first step, it signals the government’s intention to maximize indigenous resources and has generated strong interest from foreign investors in the Philippines’ upstream oil and gas sector,” did he declare.

“Cadlao is a former oilfield that was last produced in the early 1990s with over 11 million barrels. The operation of this oil field was taken over by Nido Petroleum from Forum Energy Philippines Corporation (FEPC) in February 2022 to finance 100% development costs which include drilling, extended well testing and further development of said field oil,” he said. added.

Marcos’ announcement comes as motorists endure a further rise in oil prices, particularly for diesel fuel which rose by around 6.50 pesos per liter from Tuesday. Consumer and activist groups have called on the president and his administration to suspend or reduce petroleum taxes, particularly excise duties introduced by the Tax Reform for Acceleration and Inclusion Act ( TRAIN), and value added tax.

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