July 2, 2008

Philippines, Spain to Drill Oil, Gas in Sulu Sea

Philippines, Spain to drill oil, gas in Sulu Sea

MANILA, July 1 (Xinhua) -- A Philippine oil company has partnered a Spanish gas producer to explore the energy reserves around Balabac island, to the southwest of the province of Palawan, local media reported Tuesday.

Burgundy Global Exploration Corp. (BGEC), a private Philippine oil firm, has entered an agreement with Madrid-headquartered Union Fenosa Gas, SA of Spain to tap oil and gas under the Sulu Sea, national Tv network GMA News reported.

The report said that the location these two companies targeted may hold trillions of cubic feet of methane gas and possibly oil, similar to areas in Sabah and Brunei.

"Though the area is partially in the deep-water and is considered a frontier due to very sparse data available, it has a potential for huge hydrocarbon discovery," BGEC's website said.

"BGEC's partnership with UFG will surely contribute to the acceleration of petroleum exploration activities in the Philippines," Michael Louis H. Sia, BGEC vice president, said.

The Philippines buys over 90 percent of its energy demand from abroad. In recent years, it has stepped up efforts to explore potential oil reserves at home by collaborating with a number of countries which have also showed interests in tapping new source of energy in the region.

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