Additional oil drillings are to set forth next year as Total E&P Philippines B.V. and Mitra Energy Ltd. of Malaysia prepare to start operations in Service Contract 56 in the South Sulu Sea.
The first 3D seismic survey result is confident that the area has a bigger oil and gas find. SC 56 is said to have an approximate of 42 million barrels to 56 million barrels of oil.
The success of this endeavor may help cushion the fluctuations of the local oil prices. As we rely greatly on imports, (and since payments are made in US dollars) transactions are very much dependent on the foreign exchange rate. Oil from SC 56 will boost local oil supply and will lessen the vulnerability of oil local prices to the foreign exchange rate.
The drilling initiated by Total Philippines and Mitra Energy can give aid to the local oil industry, which is very import-dependent. Since 2007, with an exception in the year 2009, the oil imports of the country had been increasing with rates no lower than 10%. With the opening of this new oil well, the local oil supply might increase and thus, the Philippine oil industry will depend less on imports.
Retrieved from: http://www.philstar.com/business/2013/08/23/1120342/total-mitra-energy-start-sc-56-oil-drilling-next-year
De la Paz, German III
Francisco, Maria Miranda
Oñate, Phillip Gabriel