The Philippine government has given a joint venture led by Australia’s Otto Energy Ltd more time to drill for oil in an area off Palawan.
In a disclosure to the Philippine Stock Exchange, Trans-Asia Oil and Energy Development Corporation (TA) said the Department of Energy (DOE) granted a 12-month extension to subphase 4 of Service Contract 55. The work involves drilling of exploration wells.
The deadline now falls on December 23, 2015.
The petroleum block’s operator, Otto Energy, “is continuing preparations for the drilling of the Hawkeye prospect in 2015,” Trans-Asia said.
Trans-Asia, through subsidiary Palawan55 Exploration & Production Corp, has a 6.82% participating interest in SC 55. Otto Energy holds the balance.
SC 55 covers an exploration block in offshore Palawan that includes the Cinco-1 prospect. The DOE earlier said Cinco-1 has the potential to produce natural gas at a scale equal or a little less than the Malampaya natural gas field.