Author Topic: Service Contract No. 37 – Cagayan  (Read 802 times)

adroth

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Service Contract No. 37 – Cagayan
« on: August 12, 2017, 08:28:04 PM »
From: http://pnoc-ec.com.ph/service-contract-no-47-offshore-mindoro/

Service Contract No. 37 – Cagayan

Project Location : Cagayan Basin

JV Partners and Percent Equity :  None

Project Description: SC 37 was awarded by the Department of Energy (DOE) to PNOC EC on 18 July 1990, originally covering an area of 2,200 sq. km. In 1997, it entered into a twenty-five (25) year production period when the San Antonio Gas Field was declared commercial by the DOE. This required PNOC EC to relinquish portions of the block retaining only the production area. Presently, SC 37 covers only 360 sq. km.

Brief Background : PNOC EC’s exploration activities in the Cagayan Basin started in 1974 and the 1st well, Rizal 2, was drilled in 1975.  Although gas was present, it was not tested because oil was the objective of the drilling.  In 1981, San Antonio 1 was drilled and flowed gas – PNOC EC’s first discovery.  It was a modest discovery but at the time it was not feasible to produce.  When new developments in gas-fired power plants were available, producing small gas fields like San Antonio became viable.

In 1995, the San Antonio Gas Field started production supplying the fuel requirements of a 3-MW power plant.  The field was in production until 2008 and by the time it was depleted it produced 3.54 BCF gas.

During the production period of San Antonio, PNOC EC re-assessed the petroleum potential of the area, including the old Rizal 2 well, which had gas. One of the prospects identified was Mangosteen.  The well was drilled in March 2015 and several gas-charged zones were encountered and tested. The Mangosteen-1 Well was considered a Gas Discovery Well as confirmed by the DOE.  Presently, PNOC EC is conducting post-well evaluation and assessment of the block for possible appraisal drilling.

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Re: Service Contract No. 37 – Cagayan
« Reply #1 on: October 21, 2018, 05:04:16 AM »
Major natural gas well found in Isabela
By: Jerry E. Esplanada - @inquirerdotnet
Philippine Daily Inquirer / 05:34 AM July 01, 2015

https://newsinfo.inquirer.net/701867/major-natural-gas-well-found-in-isabela

THE STATE-RUN Philippine National Oil Company–Exploration Corp. (PNOC-EC) has discovered the country’s next major commercial natural gas supply at its Mangosteen project in Santiago City in Isabela.

< Edited >

Early this month, Lopez said they had “spud the Mangosteen well, which is within our Service Contract 37 program in the Cagayan Basin.”

< Edited >

PNOC-EC records showed that the Mangosteen field—located 8 kilometers south of Santiago, Isabela—had a recoverable resource potential of 71-billion cubic feet of natural gas reserves that could contribute 60 megawatts to the Luzon power grid for more than 15 years.

Much bigger

The Malampaya project, with its output of 3.7-trillion cubic feet of natural gas and 85-million barrels of condensate that can generate 2,700 MW until 2022, is definitely much bigger than Mangosteen.

The latter, however, has the advantage of being based on land, unlike Malampaya which is located offshore and whose reserves are over 3,000 meters below sea level.

Mangosteen only needs a 500-km pipeline to deliver its output to the Ilijan, Sta. Rita and San Lorenzo gas-fired power plants in Batangas in Southern Luzon.

If the PNOC-EC upgrades the Mangosteen project to a gas-to-power project like Malampaya, “100 percent of its revenue will go to the government,” said a company insider.

On the other hand, the company owns only 10 percent of Malampaya with the majority controlled by foreign oil interests.

< Edited >