Australian Energy Firm Looks to Invest in the PH

The Department of Trade and Industry (DTI) recently disclosed that Sacgasco Ltd. is planning to establish several offshore oil developments in the country. The Australian energy firm — which locally operates as Nido Petroleum Philippines Pty. Ltd. — has set its eyes on setting up a drilling rig in the Palawan Basin.

Targeted in early 2023, the drilling rig hopes to revitalize the Cadlao oilfield through an extended well test. “This project will be followed with a plan to drill the exciting Nandino Prospect, through SC [Service Contract] 54A, also offshore Palawan and to conduct an extended well test as the basis for more to fully developing a discovery at Nandino,” added the DTI.

Sagcasco already has initial investments for both oil projects amounting to $15 million each. This will cover the drilling and testing of oil production. Each project also has a follow-up investment in the pipeline of between $10 million and $50 million. The DTI furthered that Sagcaso is, likewise, involved in the redevelopment of the West Linapacan oilfield.

This series of projects form part of the energy firm’s vision for the development of oil and gas in the country, which promises to have “massive opportunities.” Sacgasco managing director Gary Jeffery elaborated that their “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,” explained Jeffery. “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.” Sagcasco had earlier expressed its plans during the Pacific Business Mission to the Philippines in August.

“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 noted.

Source: BusinessWorld