Philex Petroleum Corp. (PXP.PH) executives said Thursday that state-owned China National Offshore Oil Corp. could be a viable partner for the Sampaguita natural gas oil field in the Reed Bank, an area in southern Philippines that is disputed by China.

Philex Petroleum chairman Manuel Pangilinan, who met with Cnooc Group earlier this month in China, told reporters that the Chinese company has the financial capability and technical expertise to become an investment partner.

Nevertheless, no further talks have been scheduled with Cnooc officials, Pangilinan said.

Philex Petroleum may have to look for a foreign partner once the exploration stage has been completed, he said, adding that the company is talking with other potential partners.

Development costs at the Sampaguita oil field could reach at least $4 billion, said the company's president, Carlo Pablo.

The latest estimate suggests that the natural gas deposit in the Sampaguita prospects could be triple the 2.7 trillion cubic feet reserve of Malampaya, the country's largest natural gas field, which cost $2 billion to develop.