The number of exploratory wells in the Philippines should reach double figures this year for the first time since 1982.
Ten wells are scheduled for 1991--eight offshore and two onshore--says County Natwest Woodmac, Edinburgh.
Much of the drilling will be in deep water north and west of Palawan Island, scene of a number of recent discoveries.
DRILLING PLANS
County Natwest said at least 31 Philippine exploration and appraisal wells will be drilled by 1995.
This figure could prove conservative because it does not include commitments from new service contracts being signed.
Philippine oil production has declined since 1985 and averaged 4,700 b/d last year. Production from existing fields will cease by yearend, the analyst said.
However, Cadlao field's floating production system is scheduled to be removed from the Cadlao field and installed in West Linapacan A field after a refit.
Offshore Philippines oil flow is expected to resume at midyear 1992 with start of extended test production from West Linapacan A, to peak at 15,000-20,000 b/d (OGJ, Apr. 15, p. 96).
If full development proceeds, Output could peak at 40,000-50,000 b/d.
FIRST COMMERCIAL GAS FIELD?
County Natwest also noted efforts to prove enough reserves to justify the first commercial gas development in the Philippines.
Occidental Petroleum Corp. in 1989 found about 700 bcf of gas in Camago field, where Royal Dutch/Shell Group also acquired a 50% interest via farmout (OGJ, Apr. 23, 1990, p. 29).
The joint venture has been awarded more acreage in the same area and plans a three well program in 1991-92 to prove the 4 tcf required for a commercial development.
The analyst estimates cost of an offshore gas development at $1.5-2 billion.
A pipeline from the deepwater discovery to shore would account for $500-700 million of that total, County Natwest said.
Any commercial development would probably be based on a series of subsea wells tied back to a fixed processing platform in shallower water.
The most likely market for the gas would be electric power generation. Negotiations for a supply contract are in progress with the Philippine National Power Corp.
Copyright 1991 Oil & Gas Journal. All Rights Reserved.