ILOILO
CITY, Philippines, December 16 (IslamOnline.net) – In a move
expected to boost the economy and investment chances in the southern
Philippine island of Mindanao, a new oil exploration project has been
launched, according to the Mindanao Business Council.
Romeo
Serra, MBC vice chair, said the oil exploration project approved early
this month by the government would benefit Mindanao not only with the
investment but its impact on foreign investors.
“Such
a big investment is definitely good for Mindanao. It would help our
economy with the money that would be put into it,” Serra told
IslamOnline.net Thursday, December 16. He pointed out, too, that “it
would tell the world that Mindanao is a safe place for investors.”
Philippine
President Gloria Arroyo allowed last week the oil exploration project
over the Agusan-Davao basin in Mindanao’s Davao province.
South
Sea Petroleum Holdings Ltd., which has similar projects in Indonesia,
is going to spend US$200,000 for the initial stage of the project that
includes the conduct of geophysical survey.
The
Chinese-owned firm registered with the Hong Kong stock exchange is
going to spend another US$700,000 for the first exploration well. It
plans to drill three to four wells each to determine commercial
viability of the petroleum reserves.
In
announcing the project’s approval, Philippine Energy Secretary
Vincent Perez said that any discovery of oil in the area “will be a
big boost to our economy and energy independence." Philippines is
largely dependent on oil imported from the Middle East.
Foreign
Investments
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Mindanao is rich in natural resources.
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Serra,
speaking for the MBC, the largest organization of businessmen in
Mindanao, told IOL that Mindanao’s economy is thirsty for foreign
investors.
“We
really need investors here particularly foreign investors because we
lack capital. With our island’s potential, there is so much you
could put your money into.”
He
added the oil exploration project “is a concrete example” that
Mindanao, the country’s second largest island and touted to be home
to the vast untapped natural resources, is a good and safe place to
invest in.
The
MBC official pointed out that peace is an important factor that
ushered in the new investment. “It is good that the cease-fire
between the MILF [Moro Islamic Liberation Front] and the government is
holding true. Investors have now started to look at Mindanao again.”
Mindanao,
home to most of the country’s Muslim population, has been hugged by
conflict for the last three decades, shooing away potential
investments by big foreign companies. The MILF, which is fighting to
reclaim the island, is in an armed conflict with the
Philippine government.
An
ongoing exploration project for oil is undertaken in Mindanao’s Sulu
Sea. Initial drilling with total depths of 1,850 feet and 935 feet for
each oil well show the two contain about 260 million barrels of oil
and another 600 billion cubic feet of gas.
The
Sulu Sea, on Mindanao’s southern tip, is one of the most prospective
areas for oil and gas exploration based on the results of the
Philippine Petroleum Resource Assessment Project conducted by the
Norwegian Agency for Development Corp. The study showed that the area
has the same geology with the oil and gas producing fields in
Indonesia, Malaysia and Brunei.
The
Philippines is reputed to have 2.8 trillion cubic feet of proven
natural gas reserves.
According
to the Mindanao Economic Development Council’s recent report,
“there is an observed improvement in business climate as indicated
by the continued pouring in of investments in Mindanao along with
increased air and sea traffic.”
It
pointed out that peace and order conditions “particularly in the
conflict-affected areas of Mindanao most especially with the
resumption of the peace talks and the visit of the International
Monitoring Team from Malaysia are envisioned to further boost business
confidence and sustain economic activities in Mindanao.”
