Byline: MYRNA M. VELASCO
Premier Oil (Philippines) B.V. of Netherlands has cornered a new oil and gas exploration contract over the Ragay Gulf and parts of Bondoc, Peninsula in southeast Luzon basin, the first one to be signed after six years.
A contract signing was undertaken yesterday between Energy Secretary Vincent S. Perez and Premier Oil director Peter Cockroft.
The new exploration contract will bring in investments of about US$4.6 million to US$12.6 million (approximately P253 million to P693 million) in the exploration stage alone, according to the Department of Energy.
The acreage covers 1,088,000 hectares; and is considered among the frontier sedimentary basins in the country.
The new SC will have a seven yearterm under the exploration phase, extendible for another three years to test the commercial viability of the field in the event of an oil discovery.
At least four exploration wells are expected to be drilled in the seven-year exploration stage with the first two years dedicated to conducting geological and geophysical studies.
Once the commercial viability of the oil field is determined, the production phase will follow.
Premier Oil service contract will be automatically extended for another 25 years and a final extension of another 15 years.
"The signing of a new service contract over Ragay Gulf represents the beginning of a new phase of petroleum exploration in the Philippines. We are positive that the Ragay Gulf is a promising site that may one day deliver oil and boost our energy self-sufficiency," Perez …