As announced on 15 July 2019, PNOC-EC and Ratio Petroleum signed a Memorandum of Understanding (MOU) to permit PNOCâs entry to SC 76, located in the northeastern flank of the East Palawan Basin. Both parties are bound to establish cooperation in research and feasibility studies and exchange of technical information, starting with SC 76. The terms of PNOCâs participation in the block are to be agreed upon at a later date.    On 17 October 2018, Ratio Petroleum officially signed a service contract for SC 76 with the Philippinesâ government for the Philippine Energy Contracting Round V (PECR V â Area 4). This is the only service contract awarded under PECR V. On 30 June 2015, the Department of Energy (DOE) received bid applications for only four areas out of the total 11 areas offered. Local company Colossal Petroleum has put in bids for Area 5 and 7 (East Palawan and Recto Bank) whilst Area 1 (Southeast Luzon) received bid from Yulaga Oil. However, application from Yulaga Oil was disqualified while awards for Colossal petroleum were cancelled due to requirement issue with Commission on Audit (COA).    The state-owned Philippines national oil and gas company, PNOC has been continuously looking for partners in petroleum exploration and development to secure a sufficient energy for local consumption.    Israel-based Ratio Petroleum Ltd. is a subsidiary of Ratio Oil Exploration. The E&P company also holds interests in Guyana, Suriname, Ireland and Malta.    Background Information      The 4,160 sq km of SC 76 is covered by a 540 line km of 2D seismic data. The block lies at water depth of around 200 m to 2,000 m.        To date, no wells have been drilled within the service contract. Nearby wells are Cuyo 1, Paly 1, Dumaran-1 and Silangan 1. The last two wells have exhibited oil and/or gas shows.        The western portion of the block was previously held by Phillips Petroleum Co. and partner Shell Philippines BV from June 1978 to July 1983 as block SC33 East Palawan. SC 76 is also part of Area 8 which was offered during PECR IV in 2011.        Play types identified in the block are the reef build-up, anticline, stratigraphic and possible fault block play (from recent studies). The area consists of sedimentary thickness of around 3,000 to 5,000 m.       Reservoir target: Cretaceous sandstones, Oligocene to Middle Miocene Carbonates and Middle Miocene to Upper Pliocene sandstones.       Source rock â Hydrocarbon was generated by the Oligocene to Miocene shales.       Seal â Intraformational seal would be provided by Oligocene to Pliocene mudstones and shales.       DOE estimated resources potential of 1.23 Bbbl of oil and 2.06 Tcf of gas.
PNOC-EC and Ratio Petroleum signed a MOU to permit PNOCâs entry to SC 76.