BY JOCELYN MONTEMAYOR

EXXON Mobil Corporation will start drilling oil in Sulu in 2009, Stephen Greenlee, vice president of Exploration and Production, said after a courtesy call on President Arroyo yesterday.

Greenlee said his company is "very encouraged by the prospects" in the Philippines and is prepared to spend "several billions of dollars" in developing oil fields in Sulu.

Energy Secretary Angelo Reyes said the entry of Exxon is a major milestone in the oil exploration and development efforts in the Philippines.

"Exxon Mobil is the largest explorer and producer of gas in the world. They have the technical competence and financial muscle to undertake major oil exploration and production efforts," he said.

Exxon Mobil initially acquired 50 percent operating interest in Block SC 56 from Mitra Energy Ltd. which consists of an 8,000 square kilometer area located in the "deepwater Sandakan Basin in the southwest region of the Philippines islands."

Greenlee, with Exxon Mobil officials led by area manager Sam Conner, said his company had in the past conducted "modest oil exploration initiatives" in the country and this would be its "first real entry into the exploration area in the Philippines."

He said Exxon had initially "acquired seismic data" in 2007 which their company is now evaluating.

He said they intend to start drilling by next year, which he estimates would cost "up to $1 million per day."

Greenlee said the success of the project would be a "big deal for the Philippines" as they expect it to result in a "growth and multiplier effect in the region."