Philippines hopes Cadlao oil redevelopment will revitalize upstream sector

MANILA: The Philippines is looking to revive its moribund upstream oil industry by redeveloping fields that last produced in the early 1990s as it wants to wean itself from fuel imports, energy officials say. said Wednesday.

The Southeast Asian nation imports nearly all of its fuel needs, so high global prices for oil and other commodities have pushed inflation to a four-year high and clouded economic growth prospects.

The Kadlao field near western Palawan and the country’s Malampaya natural gas and Galok oil projects could begin production by 2024, according to the Energy Department. Nido Petroleum will operate the oil field.

Cadrao’s estimated recoverable volume of 5 to 6 million barrels of oil is unlikely to have a significant impact on domestic supplies, but Energy Secretary Rafael Rotila said renewed investor interest in the upstream sector could said it is rising to

Nido has also been cleared to proceed with a site survey for another Palawan prospect, and Rotila hopes the natural gas field around Malampaya, which is set to run dry by 2027, will also be developed. There is

“We are confident that this trend will continue as it reaffirms the openness of the economy to prospective investors and ensures continued stability of the legal framework,” Rotila said at a press conference.

The Philippine upstream sector has been largely inactive for years as territorial disputes in the South China Sea continue to plague investors.

Earlier this year, PXP Energy Corp put exploration activities, including two service contracts, on hold in the South China Sea after reports that a Chinese Coast Guard vessel tailed two vessels hired to conduct seismic surveys. Did.

“As far as security is concerned, we must ensure that these[Cadrao and Nido]activities are definitely taking place in areas within the jurisdiction of the Philippines,” Rotila said.