For Service Contract 56, the Exxon Mobil affiliate will farm-in for a 50-percent interest in the designated exploration block; with the other 50-percent retained by Mitra Energy, that also takes operatorship of the project.

The deal involves 2D seismic acquisition phase of the exploration program that they have applied for with the Department of Energy.

In a press statement, the companies bared they are acquiring 2D seismic data from at least 2,400 kilometers part of the acreage.

"We are pleased to add this prospective acreage to our global portfolio and to begin exploration in the Philippines," said Esso Exploration vice president Steve Greenlee.

Meawnhile, a 3D seismic program covering approximately 1,600 square kilometers is planned by the first quarter of 2007.

The newly-signed agreement, that also details out proposed work program, would be lodged for final approval of the energy department.

Exxon Mobil Corporation is a giant multinational oil company with immense presence in roughly 200 countries and territories worldwide.

Its core upstream oil and gas ventures in the Asia-Pacific region are in Australia, Indonesia, Malaysia and Papua New Guinea. The company also has refining and marketing presence in more than 12 countries in the region.

SC 56 was among the contracts awarded by the DoE under the first Public Contracting Round (PCR) for oil and gas two years ago.

The government has been embarking on an aggressive promotion and investment invitations to develop the country’s oil and gas resources, as a way to shore up the country’s energy self-sufficiency.

Available data indicates that the country has substantial oil and gas reserves, but development efforts have remained marginalized up to this time.