Philippines promotes energy exploration, foreign investment

MANILA, Philippines, Oct. 5 (UPI) -- Western energy companies are increasing their exploration activities in the Philippines' offshore waters.

The Manila Times reported Monday that Royal Dutch Shell's Filipino subsidiary, Pilipinas Shell Petroleum Corp., said that its local oil and gas exploration and development unit, Shell Philippines Exploration B.V. (SPEX), will drill a second well in its concession, the Malampaya field in offshore Palawan in the South Sulu Sea. Pilipinas Shell Petroleum Corp. Country Chairman Edgar Chua commented, "We are going to make additional investments. There would be a second phase." SPEX finance manager Jose Jerome Pascuall said that further development would go forward if the drilling proved successful, telling journalists, "Once we are able to finalize the drilling and we know the outcome of the drilling -- then we can say if it's worth further investments."

The government of President Gloria Macapagal Arroyo strongly supports the efforts of multinational energy companies to explore the country's onshore and offshore deposits, as the country's current oil production of approximately 24,000 barrels per day is dwarfed by imports of more than 356,000 bpd, resulting in a serious balance of payments problem.