UPSTREAM oil and gas firm The Philodrill Corp. is in search of a brand new government contract to proceed and expand its petroleum operations in northwest Palawan following the expiration of its existing service contract.
In a regulatory filing on Thursday, the corporate said its Service Contract (SC) 13C2 covering the West Linapacan Block expired, ending the 15-year extension of the agreement originally awarded on Dec. 17, 1975.
“The brand new contract seeks to expand the present 17,724-hectare area to roughly 82,000 hectares by incorporating adjoining open acreage to the east,” Philodrill said.
West Linapacan is taken into account a mature exploration area with a proven petroleum system and remaining recoverable oil. The block accommodates two known oil-bearing structures, West Linapacan A and West Linapacan B.
Production at West Linapacan A began in 1992 with three production wells. Peak output reached about 18,700 barrels of oil per day for 4 months, although increasing water production over time reduced well performance.
“4 sidetrack wells were drilled from two of the initial wells after early water breakthrough, but had limited success in maintaining production,” the corporate said.
The sector continued to supply until January 1996, when operations were shut in resulting from an uneconomic oil production rate compounded by low global oil prices. Total cumulative production from the sphere reached about 8.5 million stock tank barrels.
West Linapacan B, meanwhile, stays undeveloped. Drill stem testing showed that the well successfully flowed oil and gas, confirming the reservoir’s productivity.
Philodrill said available technical data indicate that potential hydrocarbon accumulations may extend beyond the currently defined structural boundaries of the sphere.
To maneuver forward, the corporate, along with a three way partnership partner, has applied for a development and production petroleum service contract, a contractual framework typically used for areas with existing discoveries and prior production.
Under the proposed contract, Philodrill plans to deploy modern technologies to revitalize production at West Linapacan A and produce West Linapacan B into business operation.
Individually, Philodrill said it was awarded three additional service contracts through consortiums.
Service Contract Nos. 80 and 81 are positioned within the southern Sulu Sea and canopy areas of about 780,000 hectares and 532,000 hectares, respectively. Service Contract No. 86 covers roughly 132,000 hectares within the Northwest Palawan Basin. — Sheldeen Joy Talavera