Philippines: BHP Billiton Needs More Time

BHP Billiton, the operator of Philippines Service Contract 55 (SC55), has requested an 18 months extension to the current Exploration Sub-Phase 4 of SC5.

If approved by the DOE, this would extend the current contractual deadline to complete drilling of the commitment well from 5 th August 2012 to 5 th February 2014.

BHP Billiton has requested this extension in order to secure an appropriate ultra deepwater rig with specialised well control equipment that will promote safe drilling operations on the proposed Cinco prospect. Availability of such rigs is currently limited and has been considered in the duration of the requested extension. The requested extension also is expected to provide time for post-well analysis prior to commitment to any subsequent Sub-Phase.

No specific date for commencement of drilling operations in SC55 can be given until a rig has been secured.

Otto Energy which owns 33.18% in the SC55 says it “maintains its longstanding view that SC55 holds significant hydrocarbon potential and the company looks forward to seeing the drilling programme executed as soon as is safely possible. Further updates to shareholders will be provided as progress is made.”

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Offshore Energy Today Staff, April 16, 2012