EDC bags $15-M drilling deal in Papua New Guinea

ABS-CBN News

Posted at Jul 21 2009 01:44 PM | Updated as of Jul 22 2009 12:26 AM

MANILA - Lopez-led Energy Development Corporation (EDC) announced on Tuesday that it cornered a $15 million drilling contract with a Papua New Guinea firm.

In a disclosure to the stock exchange, the Philippines' biggest producer of geothermal energy said the 10-month contract with Lihir Gold Limited (LGL) involved drilling 7 new wells up to end-2009 and the supply of drilling related services at day rates effective March 8, 2009.

The new contract is an extension of existing drilling services to LGL, which has been tapping EDC since 1999. In 2008, LGL tapped EDC for a $16.11 million drilling contract.

LGL, one of the leading gold producers in the Asia Pacific region, sources its power requirements from its existing 56-MW geothermal power plant in Lihir Island. LGL has been expanding its gold output, thus the need to expand its geothermal power plant capacity by another 40 megawatts.

“Our excellent drilling and safety performance is one of the reasons for LGL’s decision to continually engage EDC as its drilling contractor in Lihir,” EDC Vice Chairman and CEO Paul Aquino said.

EDC's drilling revenues in 2008 amounted to P726 million. Aside from Papua New Guinea, EDC had drilling-related projects in Indonesia and Bangladesh.