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Iceland Drilling secures drilling contract for Philippine project

Iceland Drilling secures drilling contract for Philippine project Geysir drilling rig of Iceland Drilling on Biliran Island, Philippines (source: Biliran Island Blog)
Alexander Richter 27 Apr 2015

The Montelago project in Oriental Mindoro, Philippines is expected to be operational in 2016 and have an output of 40 MW.

Local filipino news sources details that Emerging Power Inc (EPI) has signed up Iceland Drilling Corp. (IDC) to perform drilling operation for the Montelago project.

The news source stated that: the renewable energy company said in a statement over the weekend that IDC will undertake the drilling activity for the $185-million Montelago project.

“We are tapping IDC to ensure a technically superior work in our 40-MW geothermal project in Oriental Mindoro,” EPI Chairman Martin Antonio G. Zamora said in the statement.

Under a deal inked last April 20, IDC will drill at least two wells. IDC has conducted drilling operations in the Faeroe Islands,the UK, Portugal, Hungary, Bavaria, Malaysia, and Indonesia.

“With the signing of the contract, IDC will now be involved with EPI to ensure the readiness of the site for the arrival and assembly of the drilling equipment. Drilling of the first exploration well is expected to commence on July 15,” Mr. Zamora said.

EPI chose IDC following a comprehensive six-month selection process.

Expected to be operational by 2016, the Montelago project straddles barangays Montelago, Montemayor and Melgar-B in the municipality of Naujan, Oriental Mindoro.

As reported last week, Nickel Asia Corp. last month converted its P446-million loan to EPI into equity, allowing the listed miner to hold an initial 55% shareholding in the renewable energy firm.

The company’s board also approved an additional investment of P474 million — to be made in stages — to further raise Nickel Asia’s stake in EPI to 66%.

Source: Business World Online