Cadlao oilfield in Palawan is set to be developed by Australian Energy firm Sacgasco which is locally operating as Nido Petroleum Philippines Pty. Ltd. according to a statement released by the Department of Tourism and Industry (DTI).
The following projects are in the pipeline and part of the eyed offshore developments in Cadlao, Nandito and West Linapacan, Palawan:
- Service Contract (SC) 6B in revitalizing Cadlao oilfield in the Palawan basin with the aim of getting a drilling rig in early 2023. Amount of investment is $15 million for the drilling and testing of oil production.
- Service Contract (SC) 54A drilling in Nandito Prospect also offshore Palawan in conducting an extended well test as a basis for more to fully develop discovery. Investment is pegged at $15 million also.
- Service Contract (SC) 14C2 which covers the redevelopment of the West Linapacan oilfield.
Follow-up investment ranging from $10 to $50 million for each project is set by Sacgasco.
According to Mr. Gary Jeffrey, Sacgasco managing director, ‘the size of the prospects in this areas are such that successful drilling would dramatically change the Philippines’ energy picture for the better and help the Philippines become a next exporter of energy.’
The involvement of the DTI is the extension of incentives focused on energy-related projects to achieve efficiency, cost reduction, ensure continuous supply of petroleum products, and enhance environmental protection. They are also supported by the Board of Investments with endorsements from the Department of Energy.
“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,” the Department of Trade and Industry said further.
Here is to hoping this projects materialize soon enough as the country including Palawan is facing an imminent energy crisis.
Photo by Zachary Theodore on Unsplash
