Project Profile
Value: US$74 million
Location: Offshore Palawan Island, Philippines
Water Depth: 1,400 m
Area: 9,880 km2
Service Contract 55 was awarded to NorAsian Energy Ltd in 2005. The initial seven year term is due to expire in August 2013. Two important deepwater exploration wells are committed to be drilled prior to the expiry of the initial period of the licence with a possible 3 year extension. SC55 covers an area of 9,880 km2 located in the southwest Palawan Basin. It is a deepwater block in the middle of a proven regional oil and gas fairway that extends from the productive Borneo offshore region in the southwest to the offshore Philippine production assets northwest of Palawan.
The exercise of an option to farm-in to SC55 by BHP Billiton was announced in May 2011. This significant commitment by BHP Billiton provides Otto with access to a proven deepwater offshore operator. The terms of the farm-in agreement will see Otto relinquish 60% working interest and operatorship to BHP Billiton in return for a carry on two deepwater offshore wells and reimbursement of prior costs incurred in the contract area. Notice has been issued by the joint venture to the Department of Energy to enter sub-phase 4 commencing August 2011 and committing to the drilling of the first deepwater offshore well. This well is required to be drilled
prior to August 2012.
SC55 contains Cinco, Hawkeye and numerous other substantial prospects and leads. The Cinco prospect is located in Service Contract 55, spanning an area of 2 million acres (9,000 square kilometers), and is located offshore Palawan Island in the Philippines. Otto Energy operates SC55. The Hawkeye prospect is interpreted to be a large, relatively undeformed Miocene aged toe thrust, analogous to offset discoveries in Malaysia. The Miocene turbidite reservoir is likely to be tested by a well sitting in approximately 1700m of water. The recent 3D seismic acquired in early 2010 has identified a significant number of similar structures. A clear gas escape chimney is observed on seismic adjacent to Cinco reducing the risk of hydrocarbon charge into the structure. Success at Cinco would high grade many of the adjacent large analogue structures in the block and in combination they have the potential to unlock a large new gas province of LNG proportions.
Operators:
Otto Energy (subsidiary of NorAsian Energy): Operator with 68.18% interest (exited September, 2016)
Century Red Pte Ltd. : 15% interest
Pryce Gases Inc.: 10% interest
Palawan 55: 6.82% interest
Contractors:
Maersk Drilling: Drilling contract using the Maersk Venturer drill ship to drill the Hawkeye-1 exploration well location. Mobilisation to the drilling location will commence on 31 July 2015 and is expected to take around 1 to 2 days, with drilling operations to commence upon arrival of the rig on location.