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rounds for exploration ventures and Briguez based LNG import project in Batangas Province.
said PNOC-EC now aimed to bring on other Deliveries are due to begin in 2022. The project
investors and reduce its 28% stake even further. will give the government’s energy planners room
“We will be farming out for SC 57. We own to breathe as they strive to stimulate upstream
28% but with the new [executive order] EO, we investment.
will be farming out 70%. The terms of reference While Duterte’s move to lift his moratorium
are currently being validated by the DOE and is a welcome one, paving the way for developers
then once it is approved, we will farm it out and to tap into the country’s offshore potential, his
proceed and with the additional studies and the timing is another matter altogether.
drilling for SC 57,” the executive said. Convincing foreign investors to commit to
“If we start drilling by 2021, hopefully in five new upstream projects will be an uphill battle,
years, we will go into production and that is 2026 given current economic conditions, and PNOC
or early 2027,” he added. Commenting on SC may struggle even to convince its existing part-
59, he said that while SC 57 held more promise ners to part with their cash. CNOOC has already
that was only because the company did not have made it clear that its investment strategy will
much data but that it was upbeat over SC 59’s favour domestic projects over foreign fields,
promise. while Jadestone’s focus has been on extending its
core Australia area into New Zealand with the
What next acquisition of the Maari project from OMV.
The Philippines has forecast that Malampaya will If Chinese investors prove reluctant to com-
run dry by 2027, though the field may see its life mit to the projects, and are not motivated by
extended through additional drilling work. After political considerations such as Beijing being
all, the field was until a few years ago originally able to promote a softer image in disputed
predicted to reach its end of life in 2023. Never- waters, bringing new Philippine fields online
theless, the broad consensus is that the field has a might prove too much of a challenge. The gov-
limited lifespan and the power plants it feeds will ernment would need to convince potential
need a replacement source of feedstock. investors that the promise of offshore rewards
To this end, the government in September outweighed the risks posed by volatile South
approved First Gen’s plans to begin work on a China Sea relations, a somewhat tall order when
floating storage and regasification unit (FSRU) all is said and done.™

P12 www. NEWSBASE .com Week 42 22•October•2020