Exxon plans $100 mln investment in Philippine basin
By Manolo Serapio Jr.
U.S. oil major Exxon Mobil Corp (XOM.N) has committed to invest up to $100 million to search for oil and gas in the southwestern Philippines, according to documents from the Department of Energy.
Exxon earlier took a 50 percent interest in a contract held by Malaysian exploration firm Mitra Energy Ltd to search for oil and gas in the deepwater portion of the Sandakan basin.
An official at the energy department, who declined to be named because he was not authorised to speak, confirmed on Tuesday that Exxon is planning to invest up to $100 million on a its drilling programme, adding the agency was waiting for company to provide details of its spending plans.
Interest in oil and gas in the Southeast Asian nation has increased following the discovery of Galoc oilfield, the country’s first major oil find since the 1990s, in the southwestern Philippines.
Galoc, operated by European trader Vitol and Australian oil firm Otto Energy (OEL.AX), has been producing an average 15,000 barrels per day since it came onstream Oct. 9. Reserves at the oilfield are estimated at 10 million barrels.
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