Atlantic Richfield group eyes Philippine oil prospect

by The Associated Press

A consortium led by the Philippine subsidiary of Atlantic Richfield Co. has committed to drill at least one well in the Sulu Sea near the Philippines’ border with Malaysia by July, a consortium member said April 10.

Basic Consolidated Inc. said the consortium will drill its first well to test the Wildebeest prospect located in the deep-water portion of the Sandakan delta system.

The consortium did not provide an estimate of the Wildebeest prospect’s reserve, although it said geologic evidence indicates a “higher probability for oil over natural gas.”

Basic said if results of the first well prove favorable, a second will be drilled soon. There are also plans to drill at the nearby Rhino prospect next year if the Wildebeest prospect is successful, it said.

Aside from Basic and Arco Philippines (Sulu) Inc., the other members of the consortium are Oriental Petroleum and Minerals Corp., South China Resources Inc., Germany’s Preussag Energie Gmbh, and Malaysia Mining Corp.

Unocal Sulu Ltd. earlier joined the consortium, but its entry is pending government approval.