Forum Energy, who owns the service contract (SC 72) of the disputed Oil Rich Reed Bank has allotted $3M for exploring the oil resource in the said area. Forum Energy has 70% ownership of SC 72, while Philex Mining in 2008 acquired 65% ownership of Forum Energy.
Exploration stage is projected to last seven years that will be broken down into 4 phases.
First phase will have an 18 month period with goals to drill one exploratory well or have acquired 250 sq km of 3D seismic data or 2D High resolution seismic data. 2nd Phase will have a duration of 24 months and will generally be further drilling and exploration. If ever there is any significant discovery the service contract stipulates a 25 year duration for oil production.
The Reed Bank is an area west of Palawan and within the Philippines 320 km exclusive economic zone but its ownership however is disputed by the countries of China and Vietnam. Exploration of the Reed Bank has shown that it could contain about 3.4 trillion cubic feet of natural gas and 440 million barrels of oil
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Category: Oil, Oil Price
