Australian oil and gas company Gas2Grid has been granted approval by the Philippine Department of Energy (DOE) to commence extended oil production from the Malolos-1 field.
The company will begin operations once the crew and equipment have been mobilised to the site, expecting initial oil production to commence in April.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Testing is currently being carried out in order to confirm the commerciality of the oil field. In order to conduct the tests, the DOE had extended Service Contract 44 for a 12-month period starting on 29 January. The information helps to justify the DOE awarding a 25-year production period, leading to full field appraisal as well as development.
Proving commercial production at Malolos oil field is expected to have an impact on the value of the company, while benefiting the Philippines economy.
On 29 January, Gas2Grid reported a ‘Contingent Resource’ of oil in the two productive sandstones for the Malolos oil field between a low estimate of 6.8 million barrels and a high estimate of 68.1 million barrels, with a best estimate of 20.4 million barrels of total oil initially in place.
The company said it is in continuous discussions with interested parties for funding the complete appraisal and development work, which includes seismic acquisition, production well drilling and production facilities at the field.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataGas2Grid plans to fund the extended oil production testing from existing cash reserves raised in 2013.
