AFX Asia (Focus): Shell unit, partners want to further explore area in western Philippines (ShellNews.net) 10 March 05
MANILA (AFX) - Shell Exploration BV, with partners South China Resources Inc and Kuwait Foreign Petroleum Exploration Co, has sought government permission for the group be allowed to further explore an area off the western Philippine island of Palawan for oil.
In a disclosure to the Philippine stock exchange, South China Resources said the group filed with the Department of Energy yesterday an application to convert its Geophysical Survey and Exploration Contract 99 (GSEC 99) into a Service Contract.
"If approved, the partners will gain access to provision for geological and geophysical evaluation, including exploration drilling within its first seven years, as well as a 25-year production term in the event of a commercial discovery of hydrocarbons," South China Resources said.
GSEC 99 covers a relatively unexplored area of 1.33 mln hectares to the northeast of Palawan. It was awarded to South China Resources in November 2000, and two years later Shell Exploration assumed a 50 pct stake in the project.
Yesterday, Kuwait Foreign Petroleum Exploration, a unit of state-run Kuwait Petroleum Corp, became part of the group when it acquired an undisclosed stake from Shell Exploration.
The area to the east of Palawan has been generating interest from local and foreign exploration firms as it is considered an area with potentially large petroleum deposits, South China Resources said.
In late trading, South China Resources was up 0.08 peso or 16 pct at 0.58 on 350,000 shares.