Philippines DOE Grants Moratorium on Palawan Basin's SC55 Work Program

The Philippines' Department of Energy (DOE) granted a two-year moratorium on the work program for Service Contract (SC) 55 in the Palawan Basin in the Philippines to the joint venture until Dec. 23, 2017, operator Australia's Otto Energy Ltd. said Friday.

The SC55 joint venture will however undertake a specialized geophysical study in the interim period to determine if further drilling activity is warranted in the block.

Otto Energy drilled the Hawkeye-1 exploration well in 2015, but found the gas discovery to be non commercial for development. The operator has no plans to participate further in SC55 and will assign its stake to the remaining joint venture partners. Documentation to give effect to this assignment is being finalized.

"Otto is would like to thank the Philippines DOE for the support that it has given over the 10 years that Otto has operated in the Philippines. Whilst disappointing that SC55 has not delivered the significant discovery that was being sought, Otto has managed to undertake this large exploration program without exposing its balance sheet to the risk of the exploration outcome," Otto’s Managing Director, Matthew Allen said in the press release.

Have a news tip? Share it with Rigzone!


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies

Our Privacy Pledge

More from this Author
Rigzone Staff
e-mail us at
 -  TRACE Secures INPEX Deal, Creates Jobs (Jun 23)
 -  What Are the Qualifications to Become ... (Jun 23)
 -  SolstadFarstad Emerges After Company M... (Jun 22)
 -  Gas Leak at Gjoa (Jun 22)
 -  Total Energy Services Completes Savann... (Jun 21)

Most Popular Articles

From the Career Center
Jobs that may interest you
Project Manager
Expertise: Contracts Administration|Planner / Scheduler|Project Management
Location: Henderson, CO
Logistics Supervisor
Expertise: Logistics Management
Location: Sugar Land
Landman / STEM Lease Specialist
Expertise: Landman
Location: Denver, CO
search for more jobs

Brent Crude Oil : $45.54/BBL 0.70%
Light Crude Oil : $43.01/BBL 0.63%
Natural Gas : $2.929/MMBtu 1.34%
Updated in last 24 hours