Frontier Oil Corp. (FOC), a Philippines-based oil and gas firm, signed a $20 million deal with Malaysia’s UMW Oil & Gas Corp.'s subsidiary UMW Offshore Drilling Sdn. Bhd. for newbuild jackup UMW Naga 7 (375' ILC) to drill in Service Contract (SC) 50 offshore north west Palawan in the Philippines in the first quarter of next year, local media Business World reported Tuesday.
Under the contract, which runs for a duration of 120 days and an option to extend for another 180 days, UMW Naga 7 will drill two development wells at the Calauit oil field.
“We look forward to the arrival of the drilling rig in the Philippines. We are right on schedule and ready to commence drilling activities in the first quarter of next year,” FOC President Kirstoffer Fellowes said during the ceremonial signing held in Makati City in the Phillippines.
Two oil discoveries were made at Calauit 1B and Calauit South wells in SC 50 in 1991. FOC has indicated on its website that the Calauit oilfields holds an estimated 6.2 million stock tank barrels (MMstb) in proven and probable (2P) reserves and 2C contingent reserves of 6.4 MMstb.
Meanwhile, UMW Naga 7 is still under construction at China Merchant Heavy Industry Co., Ltd.'s shipyard in Shenzhen, China, with UMW Oil & Gas indicating in a June 9 company presentation that the jackup will be delivered in the fourth quarter of this year.
“We hope UMW Naga 7 will further solidify our presence in this new emerging and exciting market... Just like our business model in Vietnam, we break into the market and develop it further with more contracts,” Rohaizad Darus, president of UMW Oil & Gas said, as quoted by Business World.
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