02-07-08 A Philippine oil company has partnered a Spanish gas producer to explore the energy reserves around Balabac island, to the southwest of the province of Palawan.
Burgundy Global Exploration Corp. (BGEC), a private Philippine oil firm, has entered an agreement with Madrid-headquartered Union Fenosa Gas of Spain to tap oil and gas under the Sulu Sea. The report said that the location these two companies targeted may hold trillions of cf of methane gas and possibly oil, similar to areas in Sabah and Brunei.

"Though the area is partially in the deep-water and is considered a frontier due to very sparse data available, it has a potential for huge hydrocarbon discovery," BGEC said.
"BGEC's partnership with UFG will surely contribute to the acceleration of petroleum exploration activities in the Philippines," Michael Louis H. Sia, BGEC vice president, said.

The Philippines buys over 90 % of its energy demand from abroad.
In recent years, it has stepped up efforts to explore potential oil reserves at home by collaborating with a number of countries which have also showed interests in tapping new source of energy in the region.