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Tuesday, August 16, 2011

Benham Rise of 13 Million Hectares to be the New Philippines Territory

Benham Rise - the Natural Gas & Solid Methane Treasure Rich Undersea New Philippines Territory

The Philippines will gain 13 million hectares in additional territory, an area slightly smaller than Luzon, should the United Nations approve next year (2012) the government's claim on a region off the coast of Isabela and Aurora, Environment Secretary Ramon Jesus Paje said on Monday (August 15, 2011).

Benham Rise was found off the coast of Aurora province, Northeastern part of Luzon Island  and is part of the Philippine continental shelf and its 200 Nautical Mile Exclusive Economic Zone. With just the Pacific Ocean to the east, Hawaii is probably the next closest island.

Benham Rise, also known as Benham Plateau, is a 13-million hectare undersea region east of Luzon. It is enclosed by the coordinates 119°30'E to 132°00'E and 12°10'N to 20°30'N latitude.

The plateau is a massive formation of basalt, a common volcanic rock, and is described in a study as a thickened portion of the Philippine Sea plate's oceanic crust.

Another research notes the similarity of the shape of Benham Rise to the sharp bend of the Luzon coastline, which suggests the sea floor's resistance to subduction (the process by which one plate on the earth's crust is pushed downward beneath another plate because of collision) that may have affected the Philippine fault.

The formation lies within the continental shelf of the Philippines as defined by the 1982 UN Convention on the Law of the Sea (UNCLOS).

Under the UNCLOS, a coastal state's exclusive economic zone extends 370 kilometers (200 nautical miles) from its continental shelf, while its extended continental shelf extends for another 278 km (150 nautical miles).

Paje said the undersea region, called Benham Rise, could turn the Philippines into a natural gas exporter because of the area's huge methane deposits.

Studies conducted by the Department of Environment and Natural Resources (DENR) for the past five years indicate large deposits of methane in solid form, Paje said after a Senate budget hearing.

The government is only awaiting a formal declaration from the UN Convention of the Law of the Sea (UNCLOS) that Benham Rise is on the country's continental shelf and therefore part of its territory, Paje said.

Philippines Legal basis of Expansion

Once the UNCLOS establishes that Benham Rise is part of the Philippines, "we would have legal basis to enter into exploration agreements with private companies to explore… (the area's) resources," said Sen. Franklin Drilon, chair of the chamber's finance committee.

Drilon said a favorable UNCLOSs declaration would mean "increasing the Philippines territory from present 30 million hectares to possibly 43 million hectares" with the inclusion of Benham Rise.

Discussion over Benham Rise generated excitement especially after Paje said that Philippine representatives were just awaiting one more meeting "to answer questions" before a special Unclos committee.

Philippines as a sole claimant

Paje said there was no reason for the UNCLOS committee not to issue a decision favorable to the country "since we are the only claimant, unlike in the western side (where the Spratly Islands are)."

"We have submitted a claim under (UNCLOS) sometime in late 2008. We got a reply from the UN lately (asking us) to answer some questions. They intend to pass a resolution sometime in mid-2012 to approve our claim (that it is) part of the Philippine continental shelf," Paje told reporters after the hearing.

Records showed that the Philippines officially submitted a claim with the UN Commission on the Limits of the Continental Shelf in New York on April 8, 2009.

Davide submission

Hilario Davide, then Philippine ambassador to the United Nations, filed the country's partial submission with the commission.

The United Nations says the continental shelf is "the seabed and subsoil of the submarine areas that extend beyond its territorial sea" up to 370 km (200 nautical miles) from the archipelagic baseline. An extended continental shelf goes farther than 370 km.

The Philippines claims that Benham Rise is an extension of its continental shelf.

Paje said Benham Rise was within the country's 370-km exclusive economic zone.

American geologist

The environment secretary said an American geologist surnamed Benham discovered the area that was between 40 and 2,000 meters below the waterline in 1933.

"But we are able to define categorically that it is attached to our continental shelf only recently. We have proven (to) UNCLOS that it is attached. So now the UN is considering it for decision sometime in 2012," Paje said.

He said gas deposits in the area would enable the country to achieve energy sufficiency.

"Benham Rise is very relevant because of its gas deposits (which has been) confirmed particularly by (the) National Mapping Resource Information Agency. It has given us the data that (the area) contains solid methane. We have not explored it but we have found nodules of methane in the surface and this is very important to us," he said.

Kalayaan, Scarborough Shoal (Panatag Shoal)

The Kalayaan Island Group, which is part of the disputed Spratly Islands and Scarborough Shoal, both located in the West Philippines Sea (South China Sea) and claimed by the Philippines, are also believed to contain oil and natural gas.

Paje said there was the possibility that the country could export gas in the future.

The secretary added that there would be a demand for gas deposits in Benham Rise "because it's much cleaner than (other) fossil fuels."

The DENR formally submitted its proposed 16.99-Billion budget for 2012 to the Senate finance committee.

Sunday, August 14, 2011

Otto Energy Increased their Oil and Gas Investment to 33% stake in the Philippines oilfield

Otto’s more investments after their 1 Million barrels of Oil in Galoc Field, Palawan

With a big success of the Otto Energy Ltd in their oil and gas exploration in the Philippines; the company is now in the focus for more investments. Last March 9, 2009  Otto Energy Limited (ASX:OEL)(PINK:OTTEF) announced that the Galoc Field has produced its first million barrels of oil counting as their investment in the Philippines as yielding a good fruit.

Otto Energy Ltd - an Australian oil and gas firm said on Friday – August 12, 2011 it would increase its stake in the Philippines' Galoc oilfield to a direct 33 percent from an indirect 18.78 percent at a cost of $18.7 million.

Otto already owned 31.38 percent of Galoc Production Co WLL (GPC), the operator of the Galoc field, and said it would buy the other 68.62 percent of GPC from European trader Vitol Group.

GPC has a direct 59.84 percent stake in the Galoc field, which currently produces 6,800 oil barrels per day and is near the Camago-Malampaya natural gas fields in the South China Sea.

Otto said it would sell a 26.84 percent stake in the oilfield to Singapore energy investment firm Risco Energy Pte Ltd, thus reducing its interest to 33 percent.

Other firms with stakes in Galoc include Nido Petroleum and Philodrill Corp .

"Galoc is a proven producing asset that we know well and that complements our high potential Philippines exploration portfolio," Otto acting chief executive Matthew Allen.

The transaction is subject to regulatory approval in the Philippines.

Otto Energy Limited (ASX:OEL) Galoc Oil Field Produces One Million Barrels

Perth, Mar 9, 2009 (ABN Newswire) - Otto Energy Limited (ASX:OEL)(PINK:OTTEF) is pleased to announce that the Galoc Field has produced its first million barrels of oil.

Otto's Chief Executive Officer, Mr. Alex Parks said today "Whilst the first one million barrels of crude produced from the Galoc Field is a significant milestone to be recognised, we are still only at the beginning of the field life. The technical data being gathered during this initial production period is providing insights into the reservoir that will determine the management and further development of the field in the future". Mr Parks went on to say "I must thank the Philippines Department of Energy, the Galoc Production Company, our other Joint Venture partners and the operator of the leased FPSO, Rubicon Offshore International, for their co-operation and contributions in realising this milestone, and look forward to many more."

Otto holds a 31.38% shareholding in Galoc Production Company (GPC) which has a 58.29% working interest in the Galoc licence, and is the field Operator. Galoc is located in Service Contract (SC) 14C off the west coast of Palawan in the Philippines.

Otto Energy Starts 3D Seismic Data Acquisition in SC 69 in Visayan Basin

Otto Energy Limited advises that it has commenced a 3D seismic data acquisition program last June 8, 2011 in Service Contract 69 (SC 69) in the Visayan Basin of the Republic of Philippines.

The seismic vessel BGP Explorer, operated by Exploiter Pte Ltd (a subsidiary of BGP ), has been contracted to record the seismic data. Otto plans to acquire approximately 210 km2 of 3D seismic data in SC69 .

SC69 covers an area of 5,280 km2 in the central Visayan Basin where the data acquired from the successful 2D seismic campaign last year confirmed the presence of two sizeable reef structures, Lampos and Lampos South that sit immediately adjacent to the Calamangan Trough which is modelled to generate both oil and gas. Current “success case” estimates of oil initially in place in the combined structures range between 22 mmbbls and 713 mmbbls with a mean in place volume of 290 mmbbls.

This survey fulfils the service contract commitments in the current sub-phase.

Otto’s Managing Director Paul Moore said “the ongoing exploration program in the Visayan region of the Philippines is a core part of Otto’s exploration program with the 3D seismic currently being acquired ahead of the drilling obligation, in the next sub-phase”.

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