ExxonMobil announced it discovered speckles of hydrocarbons at their off shore drill site in the South Sulu Sea of the Philippines that is covered by the DOE’s service contract 56. The Dabakan-1 Well of ExxonMobil is located 65 km from Mapun island of Tawi-Tawi and drilling by the company started last October 11.
This discovery of hydrocarbons, that indicates the presence of an oil field, has prompted the company to drill deeper to 5,000 meters and open up another well. This will entail an additional cost of $100 million to the company.
ExxonMobil however is cautious enough to mention that they still have to do some more analysis and studies to check whether the find has potential to produce oil.
Service Contract 56 is jointly owned by ExxonMobil Exploration (50%), Mitra Energy (25%) and BHP Billiton (25%)
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Category: Oil, Oil Price
