College of Engineering – Department of Mechanical Engineering

REPUBLIC OF THE PHILIPPINES

BATANGAS STATE UNIVERSITY
THE NATIONAL ENGINEERING UNIVERSITY
ALANGILAN CAMPUS

COLLEGE OF ENGINEERING
MECHANICAL ENGINEERING DEPARTMENT
BS PETROLEUM ENGINEERING

RESEARCH ACTIVITY 2
PETE 402 - RESERVOIR GEOSCIENCES

SUBMITTED BY:
RODRIGUEZ, ARRIANE KATE ANGELICA L.
22-07525
PETE 2104

SUBMITTED TO:
ENGR. MELANNIE ADANTE

DECEMBER 11, 2023

 College of Engineering – Department of Mechanical Engineering

Direction : Research on the following topic:

1. Current status of oil and gas Exploration and Production in the Philippines
Note : Look for the current status of exploration up to date. See if we have the same lists of
sedimentary basins up to now ( see ppt for Sedimentary Basins as basis for comparison)

The Philippines, with its vast archipelagic expanse, has become a focal point for oil and gas
exploration and production. Positioned between Taiwan and Borneo, the country's strategic
location at the crossroads of the eastern and western business worlds has made it a critical entry
point to over 500 million people in the Association of Southeast Asian Nations (ASEAN) market.
Comprising 7,107 islands categorized into Luzon, Visayas, and Mindanao, the Philippines covers a
land area of approximately 300,000 km2.

The geological richness of the Philippines is reflected not only in its potential for hydrocarbon
exploration but also in its diverse natural resources and captivating history. Coral reefs, housing
rich marine biodiversity, dot the Philippine waters, serving as both source and reservoir rocks in the
country's petroleum systems. Notable limestone formations, such as those in the Puerto Princesa
Subterranean River National Park in Palawan, showcase the geological wonders that have attracted
the attention of tourists.

Beyond limestone formations, the geological history of the Philippines is shaped by volcanism
and accretion. The 'mainland' of the Philippines is a product of these processes, offering insights
into inactive and accreted island arcs. The country's volcanic rocks, primarily of andesitic to mafic
composition, have weathered over time, giving rise to thick sedimentary deposits, both onshore and
offshore.

In terms of petroleum exploration, the Philippines remains largely underexplored. Only about
10% of the country's territory has viable data related to petroleum exploration, with a concentration
of data on the offshore western side of Palawan and onshore Cebu. Exploration activities date back
to 1896 with the drilling of the Toledo-1 well in Cebu Island, revealing small but uncommercial
production. Widespread exploration efforts were conducted from the 1950s to the 1970s, focusing
on areas like the Northwest Palawan Shelf, where the Nido field was discovered in 1977, marking
the beginning of production in 1979.

The Malampaya project, located offshore Palawan, became a significant contributor to the
Philippines' energy needs, providing 20% of the country's total electricity requirements. However,
with only three active petroleum-producing fields at the beginning of 2020—Malampaya, Galoc,
and Alegria—the need for further exploration is evident.

Onshore exploration, although not as prominent as offshore activities, presents unique challenges
and opportunities. The San Antonio gas field in northern Luzon, discovered in 1994, supplies gas
to a small local area, showcasing the potential for onshore resources. However, certain regions, like
Mindanao, remain underexplored, with the Agusan-Davao Basin and Cotabato Basin offering
untapped potential.
 College of Engineering – Department of Mechanical Engineering

Offshore exploration, particularly in northwest Palawan, presents significant opportunities. The

Camago-Malampaya Oil Leg (CMOL) and the Cadlao discovery are examples of untapped
resources. While CMOL, discovered in 1991, was relinquished due to sub-commercial
considerations, the Cadlao discovery, which began production in 1981, remains viable for
redevelopment.

Further offshore, northwest Palawan's Recto Bank, or Reed Bank, is a gas-rich area with
hypothetical resources of at least 600 Bcf of gas. Despite ongoing exploration activities, including
new applications for Petroleum Service Contracts (PSCs), there is still vast potential in this region.

The large sea area between Palawan, Mindanao, and Western Visayas is a focus for upcoming
exploration, housing two sedimentary basins—the East Palawan Basin and the Sulu Sea Basin.
While the East Palawan Basin is believed to have similar plays to the producing basin west of
Palawan, the Sulu Sea Basin features carbonate reef build-ups, anticlines, and fault blocks. The
Sulu Sea Basin's estimated hypothetical resources are 109 MMboe, and the East Palawan Basin is
estimated at 166 MMboe.

The Philippines' energy demand continues to rise, driven by various sectors' automation and
digitalization efforts. The government's "Build, Build, Build" policy further emphasizes the need
for a stable energy supply. However, the Philippines remains vulnerable to changes in world
market prices, with approximately half of its energy needs dependent on imported fuels. To address
this, the Department of Energy (DoE) is actively promoting exploration through initiatives such as
the Philippine Conventional Energy Contracting Program, Energy Investment Coordinating
Council, and the Ease of Doing Business Act of 2018.

While challenges persist, including the need for additional power plants in provinces with active
petroleum-producing fields, the Philippines is positioned for significant growth in the oil and gas
sector. Ongoing exploration activities and advancements in technology provide hope for the
discovery and development of untapped hydrocarbon resources, contributing to the country's
energy security and economic progress. The DoE's commitment to an exploration-centric
approach, coupled with regulatory reforms, underscores the Philippines' determination to leverage
its geological potential for sustainable energy development.

According to the book "Sedimentology and Stratigraphy" by Gary Nichols, sedimentary basins
are expansive regions where sediment accumulates over time, forming successions that can be
hundreds to thousands of meters thick, covering areas ranging from thousands to millions of square
kilometers. The formation of these basins is intricately tied to plate tectonics and is classified based
on their relative positions in relation to nearby plates, tectonic settings, and the underlying tectonic
processes. In the case of the Philippines, a total of 16 sedimentary basins have been identified as
sites of sediment deposition and petroleum accumulation.
 College of Engineering – Department of Mechanical Engineering

Agusan-Davao Basin: This basin is situated in the southeastern part of the Philippines and
is known for its significance in terms of sediment deposition and potential petroleum
resources.
Bicol Shelf: Positioned in a strategic location, the Bicol Shelf is recognized as one of the
sedimentary basins in the Philippines where sediment accumulation plays a crucial role in
shaping the geological landscape.
Cagayan Basin: Located in the northeastern part of Luzon, the Cagayan Basin is a region
of geological interest and exploration due to its sedimentary characteristics.
Central Luzon Basin: Situated in the central part of Luzon, this basin is characterized by
the accumulation of sediments over an extensive area, influencing the geological evolution
of the region.
Cotabato Basin: Found in Mindanao, the Cotabato Basin is a notable sedimentary basin
that has attracted exploration activities, contributing to the understanding of the geological
history of the area.
East Palawan Basin: Positioned in the eastern part of Palawan Island, the East Palawan
Basin is known for its sedimentary significance and potential as a site for petroleum
accumulation.
Ilocos Trough: This basin, located in the Ilocos region, is a region of geological interest
where sediments have played a key role in shaping the landscape and influencing the
geological processes in the area.
Mindoro-Cuyo Basin: Encompassing parts of Mindoro and Cuyo Islands, this basin is
recognized for its sedimentary characteristics and the potential for petroleum resources.
Northwest Palawan Basin: Considered one of the most prolific oil and gas basins in the
Philippines, the Northwest Palawan Basin has been a significant site for exploration and
production activities, including the notable Malampaya gas field.
Reed Bank Basin: This basin, located offshore, is recognized for its geological
significance and potential as a site for petroleum exploration.
Southeast Luzon Basin: Positioned in the southeastern part of Luzon, this basin is an area
of interest for sedimentary studies and exploration activities.
Southwest Luzon Basin: Found in the southwestern part of Luzon, this basin is
recognized for its sedimentary characteristics and the role it plays in the geological
evolution of the region.
Sulu Sea Basin: Situated to the southwest of the Philippines, the Sulu Sea Basin is known
for its complex geology and has been a focus of exploration activities.
Visayan Basin: This basin, located in the Visayas region, is recognized for its sedimentary
significance and potential as a site for petroleum accumulation.
West Luzon Basin: Positioned in the western part of Luzon, this basin is an area of
geological interest where sedimentary processes have shaped the landscape and influenced
the geological evolution of the region.
West Masbate-Iloilo Basin: This basin, covering parts of Masbate and Iloilo, is recognized
for its sedimentary characteristics and potential as a site for petroleum resources.
 College of Engineering – Department of Mechanical Engineering

These sedimentary basins collectively contribute to our understanding of the geological history of
the Philippines and play a vital role in the exploration and production activities related to petroleum
resources in the country. Ongoing research and exploration efforts continue to unveil the geological
complexities and potential resources within these basins. For the most up-to-date and detailed
information, it is recommended to refer to authoritative sources such as government reports,
academic publications, and industry updates.

Certainly, when considering only the list of sedimentary basins provided in both sets one from the
ppt, the two sets are indeed the same. The basins listed in both sets are:

1. Agusan-Davao Basin

2. Bicol Shelf

3. Cagayan Basin

4. Central Luzon Basin

5. Cotabato Basin

6. East Palawan Basin

7. Ilocos Trough (listed as Ilocos Shelf in the second set)

8. Mindoro-Cuyo Basin

9. Northwest Palawan Basin

10. Reed Bank Basin

11. Southeast Luzon Basin

12. Southwest Luzon Basin

13. Sulu Sea Basin

14. Visayan Basin

15. West Luzon Basin

16. West Masbate-Iloilo Basin

The sedimentary basins listed in both sets are consistent, indicating that they refer to the same
geological features in the Philippines