Basic Energy plans drilling start for Mabini project by May 2016
Basic Energy Corp. is planning to start a drilling campaign for the 20-60 MW Mabini geothermal project in Batangas province in May this year.
News from the Philippines report today, that Basic Energy Corp. plans to start its drilling campaign for the Mabini project in May 2016.
The project is located in Batangas province.
Basic Energy senior vice president Anthony Cuaycong said that the drilling campaign for the Mabini, geothermal project would account for the bulk of the company’s capital expenditure this year.
“Cost of drilling for first well [inclusive of right of way and access road] is pegged at P300 million, of which 75 percent will be shouldered by Basic,” Cuaycong said.
Basic Energy and partner Trans-Asia Oil and Energy Development Corp. signed a joint operating agreement for the Mabini geothermal power project in November 2015.
The move followed the approval by the Energy Department of the deed of assignment for the Mabini geothermal service contract number 8 of Basic Energy to Trans-Asia.
Basic Energy now owns 75 percent of the service contract, while Trans-Asia holds the remaining 25 percent.
The approved arrangement calls for a 75-25 equity and project cost participation between Basic Energy and Trans-Asia.
Under the terms of the agreement, Trans-Asia will shoulder 25-percent undivided participating interest in the rights, interests, privileges, duties and obligations in and under geothermal service contract 8.
Trans-Asia decided to share in the cost of the first exploration well committed under sub-phase 3 of the geothermal service contract, after undertaking due diligence on the project, including geophysical work.
This validated previous prospective estimates that the project could generate between 20 megawatts and 60 MW of energy.
Source: The Standard