Philippines: Cadlao Oil Redevelopment Could Revitalize Upstream Sector

Enrico Dela Cruz
Wednesday, October 12, 2022

The Philippines is seeking to revive its moribund upstream oil industry with the redevelopment of an oil field that last produced in the early 1990s, as it hopes to wean itself off fuel imports, energy officials said on Wednesday. 

With the Southeast Asian nation importing nearly all of its fuel requirements, high global prices of oil and other commodities have pushed inflation to a four-year high, clouding economic growth prospects. 

The Cadlao field near the western province of Palawan and the country's Malampaya natural gas and Galoc oil projects could start producing by 2024, according to the Department of Energy. 

Nido Petroleum will operate the fields. Cadlao's estimated recoverable volumes of 5-6 million barrels of oil are unlikely to have a huge impact on local supply, but Energy Secretary Raphael Lotilla said there was renewed investor interest in the upstream sector. 

Nido has also been allowed to proceed with a site survey of another Palawan prospect, and Lotilla said he is hopeful that natural gas fields around Malampaya, which is set to run dry by 2027, will also be developed. 

"I am confident that this trend will continue as we reaffirm to prospective investors the openness of our economy...and assure them of the continued stability of our legal framework," Lotilla said in a media briefing. 

The Philippines' upstream sector has been largely inactive for years as South China Sea territorial disputes continue to worry investors. Early this year PXP Energy Corp put on hold its exploration activities involving two service contracts in the South China Sea, following reports that a Chinese Coast Guard vessel had tailed two ships hired to do a seismic survey. 

"As far as the security aspect is concerned...we have to assure you that these (Cadlao and Nido) activities are taking place in areas that are indisputably within Philippine jurisdiction," Lotilla said.

(Reuters - Reporting by Enrico Dela Cruz; Editing by Kanupriya Kapoor)

Categories: Energy Drilling Geoscience Industry News Activity Production Asia

Related Stories

Technip Energies Gets FEED Job for Inpex’ Abadi LNG Project in Indonesia

CIP, Petrovietnam Team Up for Offshore Wind Project in Vietnam

Valeura Energy, PTTEP Partner Up on Gulf of Thailand Blocks

China Starts Production at Major Oil Field in Bohai Sea

PTTEP Hires Energy Drilling’s Rig for Southeast Asia Offshore Job

Chuditch Gas Field Drilling Ops Get Delayed to Next Year

CNOOC Starts Production at Offshore Field in South China Sea

BP Expands Oil and Gas Scope in Azerbaijan with New Projects and Exploration Rights

Velesto’s Jack-Up Rig Set for Drilling Job off Indonesia

Turkey Discovers New Black Sea Gas Reserve

Current News

Technip Energies Gets FEED Job for Inpex’ Abadi LNG Project in Indonesia

Keppel, Seatrium in $53M Arbitration Case Over Brazil Corruption Scheme

Subsea7 Secures Work at Black Sea Field off Türkiye

CIP, Petrovietnam Team Up for Offshore Wind Project in Vietnam

Seatrium Signs FLNG Vessel Upgrade Deal for Golar LNG

EnQuest Enters Indonesia with Operatorship PSCs for Two Exploration Blocks

PXGEO Nets First Seismic Survey off Malaysia

SPE Offshore Europe 2025 set to drive transformational change for the energy sector

Shipbuilder Delivers Fast Crew Boat Pair to Aesen

Norwegian Oil Investment Will Peak in '25

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com