Polyard Petroleum International Group Limited (PPIG) is closing the well drilling tender for SC49 and will announce the result very soon. It indicates that the site construction, equipment and personnel mobilization and other drilling preparations will commence shortly after. SC49, situated at the southern tip of Cebu in central Philippines, covers an offshore concession of 970 km2 in the Cebu Straight southwest to Bohol Island, with water depth around 700m, and an onshore concession of 1,000 km2 in southern Cebu. Oil and gas have been discovered in previous drillings in SC49. China International Mining Petroleum Company Limited (CIMP, PPIG’s 51% owned subsidiary) acquired 80% participating interests of SC49 in South Cebu and became the operator of SC49 effective from July 1, 2009 under the Deed of Assignment approved by DOE.
In 2013, PPIG announced a tender for drilling of two wells in SC49. Two bidders who entered the final stages of the bidding conducted a field study respectively, then filed evaluation reports and submitted bidding documents stating clearly required business and technical terms. PPIG Vice President Vladimir Gerchikov said that in terms of SC49’s requirements, “both companies are good technically. Decisions will be made by taking into account management, financial and technical aspects.” The tender has entered the final stage with a result to be revealed in a couple of days. Very soon, site construction will commence, while relevant equipments and personnel will be mobilized to reach the site.
Gerchikov said that in the short term, “it will be a matter of technical approach, of delivering oil to the surface and producing at commercial rates.” After the new wells are spudded, technical evaluations will continue, and “if the two wells work positively, we will drill more than two wells and develop as fast as possible and as is beneficial for all of us,” said Gerchikov.
After the first two vertical wells are completed, PPIG will further evaluate and study the parameters obtained for developing the following directional or horizontal wells drilling.
