Exxon Partners With The Philippines

The Associated Press
Published: June 13, 2008

MANILA, Philippines: ExxonMobil, one of the world's largest oil and gas producers, said Friday it could spend more than US$100 million for offshore oil exploration in the Philippines.
It was the second dose of good news this week for the Philippines, an oil-importing country reeling from rapid increases in fuel prices.
The government announced earlier that a consortium of mostly Philippine companies will begin commercial oil production next week of the Galoc offshore oil field in the South China Sea off the northern tip of Palawan province, southwest of Manila.
Stephen Greenlee, vice president for Exxon Mobil Exploration Co., visited President Gloria Macapagal Arroyo to inform her of his company's plans to search for oil in the Sulu Sea, in the southwestern Philippines.
After meeting Arroyo at the presidential palace, Greenlee told reporters the exploration is "such a big deal" for Irving, Texas-based ExxonMobil, and that the company is "very encouraged by the prospects" it sees.
Energy Secretary Angelo Reyes said the government is optimistic "because when ExxonMobil enters a country, it means they are confident in it."
"They don't go into a country where the potentials are not great," he added.
Greenlee said Arroyo "gave us nothing but encouragement for our future activities."
He said company officials are evaluating seismic data from the area, and "with continued encouragement" from the information, they could start drilling next year.
However, that will be "a very expensive proposal," he said.
"A drilling program could cost over US$100 million for us to explore the potential, and then subsequent to that drilling ... and if we're successful and we find what we hope to find, then the development of the site would be (needing) several billion dollars," he said.