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'Preferred bidder' for
oil in northern Bohol
By
KIT BAGAIPO
The
Australian firm that bagged the oil exploration contract at
the Bohol-Cebu Strait is expected to be awarded the petroleum
contract off northern Bohol.
Otto
Energy Ltd., in its financial results disclosure for the first
quarter of 2008, bared that it expects the Department of Energy
(DOE) to award the oil exploration of Area 8 petroleum block
before the end of next month.
Area
8 which is under the 2006 Philippine Energy Contracting Round,
lies in the northern seas off Bohol in between Cebu and Leyte.
The area is also the site of the Danajon Double Barrier Reef,
a very rare geological formation and a marine protected area.
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It
is scheduled for another seismic survey this year and
in the early part of 2009. Area 8 spans an area of 7,004
square kilometers.
Otto
Energy said that DOW had advised its subsidiary NorAsian
Energy Ltd. and partner Trans-Asia Oil and Energy Development
Corporation that they were ranked as the "preferred
bidder" for the Area 8 service contract.
"Given
the block's location adjoining SC 51 (the Cabilao Island
in Loon and Argao in Cebu prospect), this area offers
significant follow-up potential in additional structures
if NorAsian has success in the drilling in the adjoining
SC 51," it said.
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The
petroleum block, the service contract for which will span
seven years, will be assigned within this quarter, when the
formal terms, work commitments and schedules will be finalized,
Otto Energy said.
The
SC 51 joint venture between Otto Energy and NorAsian Energy
completed its interpretation of 3D offshore seismic data it
acquired in June 2007.
The
Australian firm's website also disclosed that it is now seeking
farm-in parties for a drilling at the Cabilao-Argao prospect
which is about to commence soon.
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