This module of the resource learning centre provides an overview of TVI’s offshore oil assets. TVI holds a 12.5% interest in Service Contract 54A (“SC 54A”), which is an offshore oil and gas property located near the island of Palawan in the Northwest Palawan Basin.
Highlights of SC 54A include:
- 3 existing discoveries with oil in place of 25.7 million barrels
- Over 20 other exploration prospects
- Philippines fiscal regime the most attractive in Southeast Asia
- Sequential development concept
Much like its mining industry, the oil and gas potential of the Philippines has long been overlooked and has only recently experienced a flurry of activity. Many of the world’s major companies, including Shell, Chevron, BHP Billiton and Exxon Mobil, are establishing positions or increasing the scope of their operations in search of lucrative properties.
The Northwest Palawan basin is host to a number of notable projects. In SC 14C1, oil production from the Galoc field reached 2,694,720 barrels in 2010. Based on this success, a second phase of development has recently been initiated. Nearby, in SC 38, the Malampaya field is estimated to contain 2.7 trillion cubic feet of natural gas and 85 million barrels of condensate. Gas produced from the Malampaya field is shipped through an under-sea pipeline to three power plants on the island of Luzon. Malampaya was the first natural gas development in the Philippines and is one of the country’s largest industrial projects.
TVI’s SC 54A property contains three drill-ready discoveries that have oil in place (P50) of 25.7 million barrels. In addition, over 20 other exploration prospects have already been identified. Currently the partners in the block are reviewing the results of the previous Tindalo well and are reprocessing 3D seismic data in order to improve their understanding of the block’s geology. Once operations resume, the forward plan is to use a sequential development concept where the production facilities are moved from one development project to the next.
SC 54A fits within our existing portfolio of resource properties in the Philippines. Our participation in this oil and gas play helps to diversify our exposure to the risks associated with dependence upon only one resource and, with success, could provide an alternative source of cash flow. We invite you to "click here" and browse our interactive map of the area to fully understand the potential value impact of this play for TVI.