Multinational oil giant Exxon Mobil Corp. has delayed its planned drilling for oil and gas in the Philippines as it opted to concentrate on its huge Cepu oilfield discovery in Indonesia, according to the Department of Energy (DoE).

The US firm was scheduled to start drilling at the Sandakan basin in Sulu sea last June; but its work program has to be moved because that was also the time when it was preparing to flow oil from its field discovery along east and central Java.

The $2.6-billion Indonesia oil project was reported to be a huge one – the expected production is 960,000 to 965,000 barrels per day – hence, Exxon Mobil’s investment focus is very much required there. Judging from the numbers, this dwarfed recent oil finds in the Philippines.

“Their (Exxon Mobil) drilling in the Philippines was delayed because of their Indonesia discovery. We are still talking to them on a definite drill date, but hopefully within the year,” a highly-placed energy official said.

The energy official added the American firm is still very much committed with its planned investment in the country, “it’s just a matter of timing on when they will go ahead with the drilling.” Exxon Mobil, along with its Malaysian partner Mitra Energy Ltd., targeted to sink in $100-million initial investment for drilling activities at its Sulu prospect which is covered by Service Contract 56.

The first well is scheduled to be drilled this year; and the plan is to complete drilling for three wells within the block.

The global oil giant’s farm-in deal with Mitra Energy served as its entry point in the country’s upstream oil and gas sector. Like what it had in Indonesia, Exxon Mobil also raised hopes of finding oil in Sulu sea.

The Sulu block straddles 8,620 hectares, and if assessed based on initial available data, the Sandakan has reserves of 100 million barrels, extractable on commercial basis.

If its venture in the Philippines turns out successful, it will add up to its growing investment portfolio in the Asia Pacific region, along with those in Australia, Indonesia, Malaysia and Papua New Guinea.

In the face of lingering volatilities in global oil prices and while awaiting drilling developments at some awarded service contracts, the DoE bared that preparations are also ongoing for the next petroleum contracting round.

“We are preparing for petroleum contracting round. No definite number of areas to be offered yet,” Energy undersecretary Ramon Oca said.