PNOC Exploration Corp. (PNOC-EC), the upstream oil, gas and
coal exploration and development arm of state-owned Philippine National Oil Co., is seeking a 15 percent stake in an offshore oil and gas deepwater block southwest of the Palawan Basin that has been awarded to Australian firm Otto Energy Ltd.
Otto’s Service Contract (SC55) awarded in 2005 covers an area of 9,880 square kilometers.
SC55 is a deepwater block in the middle of a proven regional oil and gas fairway that extends from the productive Borneo offshore region in the southwest to the offshore Philippine production assets northwest of Palawan.
It also contains a number of distinct exploration play types, including the Hawkeye exploration well.
The commercial terms of the farm-in have been agreed and will be finalized in a Farm-in Agreement to be entered into by Otto and PNOC-EC and the farm-in is subject to approval by the Office of the President of the Philippines.
In addition to PNOC-EC, Otto continues to engage with other potential farm-in partners in the lead up to the drilling of the Hawkeye-1 exploration well, which is set to take place during the third quarter of 2015.
Hawkeye has a best estimate oil in place volume of 480 MMbbl (million barrels) and best estimate recoverable volume of 74 MMbbl net to Otto, post farm-down to PNOC-EC.
There is further material upside contained in other identified prospects and leads in SC55, it said, adding that Otto has access to all 3D seismic data acquired in the permit to date and has assumed as operator.