The West Balabac area is found off the southwesternmost tip of Palawan. South of the area lies several offshore oil and gas fields trending northeast. Recently, Murphy Oil discovered the giant Kikeh field, estimated to contain 400-700 milllion barrels oil, in the deepwater area of Sabah and considered Malaysia’s first deepwater discovery. Although there is still no production on the Philippine side, PNOC EC’s interpretation shows that the active petroleum system existing in offshore Malaysia and Brunei continues northward into the western Balabac area.

Based on the model developed, offshore southwestern Palawan, including West Balabac, forms the leading edge of the Asian margin that subducted along the Palawan Trough beneath a younger oceanic fragment west of the Sulu Sea. Previous wells drilled in the area targeted anticlines within the accretionary prism associated with the subduction. The sedimentary section above the continental crust is an attractive exploration objective in this marginally explored part of southern Philippines. It lies mostly in deepwater and is along the trend of the oil and gas fields of Sabah and Brunei.

Primary objective is the Miocene turbidite sands, which has been proven on the Malaysian side. The Early Miocene Nido reef on this part of the basin is a secondary target .

SC 59, which covers an offshore acreage of 14,760 square kilometers, was awarded by the DOE to PNOC EC on January 13, 2006. PNOC EC currently holds 100% interest. During the latter part of the same year, PNOC EC acquired 2,056 line kilometers of new 2D seismic data. The newly-processed 2D seismic data are currently being interpreted. Several international oil companies have also shown interest in possible joint venture opportunities.