Overview
Overview
In 1990, the Republic of Philippines entered into Service Contract No. 38 (SC-38), with a consortium consisting of Shell Philippines LLC, Chevron Malampaya LLC and PNOC-Exploration Corporation (“SC-38 Contractors”). In 1998, SC-38 Contractors declared petroleum in commercial quantity relating to SC-38.
In 2001, a 1000-meter long horizontal appraisal well named MA-10 was drilled into the northern part of the oil leg to confirm reservoir properties and to test production behavior. The production test from MA-10 commenced in December 2001 and ended in April 2002 with a total production of 1.88 million barrels of oil at rates of up to 25,000 barrels per day.
In 2001, a 1000-meter long horizontal appraisal well named MA-10 was drilled into the northern part of the oil leg to confirm reservoir properties and to test production behavior. The production test from MA-10 commenced in December 2001 and ended in April 2002 with a total production of 1.88 million barrels of oil at rates of up to 25,000 barrels per day.
However, the SC-38 Contractors expressed its position that it cannot undertake the development of the CMOL. As such, in December 2005, Executive Order No. 473 was issued directing The Philippine National Oil Company (“PNOC”) or its designated subsidiary, or for PNOC to engage third-parties, to pursue the exploration, development and production of crude oil from CMOL. In June 2006, PNOC and the Department of Energy (DOE) entered into a Terms of Service for the Re-Appraisal, Development and Production of Crude Oil from the Camago-Malampaya Oil Leg.
In July 2008, PNOC entered into a Participation Agreement with Burgundy Global Exploration Corporation relating to the CMOL Project whereby BGEC maintains an 84.9% participating interest in CMOL while PNOC retains the remaining 15.1% interest.
In 2009, TRACS International Consultancy Ltd provided a Competent Person’s Report relating to the CMOL.
In 2012, BGEC commissioned AGR Group ASA to provide another Competent Person’s Report relating to the CMOL.
In 2012, BGEC commissioned AGR Group ASA to provide another Competent Person’s Report relating to the CMOL.