Japex will conduct a feasibility study for development of crude oil offshore southern Philippines. Under an agreement between Japex and the Philippine government, the two parties will conduct the study on the area between Cebu and Negros islands. The study has a price tag of approximately $270,000. The parties will sign a contract on the project in May, according to a Japex official. Japex will have an option to shift to an exploration and production contract if the development is deemed feasible. Under the exploration contract with the Philippine Department of Energy, a block operator is committed to drilling three wells in the initial two-year exploration period. The operator will have a maximum of 10 years to explore for hydrocarbons in the block and a 40-year period for production and development.