AUSTRALIAN energy firm Sacgasco Ltd. is targeting more offshore oil developments in the Philippines, according to the Department of Trade and Industry (DTI).
The DTI said that Sacgasco, which is locally operating as Nido Petroleum Philippines Pty. Ltd., is aiming to get a drilling rig in early 2023 to perform an extended well test on the revitalization of the Cadlao oilfield, which is covered by Service Contract (SC) 6B in the Palawan basin.
“This project will be followed with a plan to drill the exciting Nandino Prospect, through SC 54A, also offshore Palawan and to conduct an extended well test as the basis for more to fully developing a discovery at Nandino,” the DTI said in a statement on Wednesday.
Further, the DTI said that Sacgasco’s initial investments for the oil projects in SC 6B and SC 54A are $15 million each for the drilling and testing of oil production with a follow-up investment ranging from $10 to $50 million for each project.
It added that Sacgasco is also involved in SC 14C2, which covers the potential redevelopment of the West Linapacan oilfield.
Gary Jeffery, Sacgasco managing director, said that the company sees “massive opportunities” to develop oil and gas in the territory of the Philippines.
“Our highest desire is to explore frontier areas with large potential near the Malampaya Gas Field that supplies natural gas to Manila and surrounding areas. The size of the prospects in this area (SC 58) are such that successful drilling would dramatically change the Philippines’ energy picture for the better,” the DTI quoted Mr. Jeffery as saying.
“We can help the Philippines address its energy challenge and in the most successful scenario, the country can even become a net exporter of energy,” he added.
According to the DTI, Sacgasco representatives were initially part of the Pacific Business Mission to the Philippines held in August, but delayed their plans due to the coronavirus disease 2019 (COVID-19) pandemic.
“The government prioritizes the equilibrium price for energy and assures continued support for foreign investments as the Board of Investments, with endorsement from the Department of Energy (DoE), guarantees enhanced incentives focused on energy-related projects to achieve efficiency, cost reduction, ensure continuous supply of petroleum products, and enhance environmental protection,” the DTI said.
“As stated on the Downstream Oil Industry Deregulation Act of 1998; such incentives include additional deduction for labor expenses, minimum tax and duty of three percent (3%) and value-added tax on imported capital equipment, unrestricted use of consigned equipment, exemption from taxes and duties on imported spare parts, among others,” it added. — Revin Mikhael D. Ochave