Philex Petroleum Corp.’s British subsidiary, Pitkin Petroleum Plc., signed on Friday the service contract for exploration and development of potential oil source in Area 5 of Northwest Palawan.
According to a statement posted at the Philippine Stock Exchange, Pitkin with its partner for the project, Philodrill Corp., is waiting for the go-signal from the Department of Energy (DOE) to kick off oil exploration in the area.
“The petroleum service contract document for Area 5 in the Northwest Palawan basin is still subject to the signature of the Department of Energy,” Pitkin said in the statement.
Philodrill, which signed the service contract on Wednesday, held the main right to the project since the company was awarded the contract in the Fourth Philippine Energy Contracting Round for Petroleum.
Ramon Allan Oca, DOE undersecretary, said that the oil exploration and development in the area by Pitkin will be conducted after Energy Secretary Carlos Jericho Petilla signs the contract.
According to DOE, the Area 5 comprises 424,000 hectares, with an oil well built before—Linapacan-1—that proved oil sources are present and existing in the area.
Besides Area 5, the service contract for Area 7 located in the southern part of Mindoro was endorsed to Otto Energy Ltd.’s local arm, NorAsian Energy Philippines Inc.
The service contract for Area 5 was bidded mainly by Philodrill last year.
Kristyn Nika M. Lazo