The Philippines' Department of Energy said Thursday that oil and gas exploration in the South Sulu Sea will start soon, with units of ExxonMobil Corp. (XOM), BHP Billiton Ltd. (BHP.AU) and Mitra Energy Ltd. forming the consortium that will undertake the deepwater project.

Energy Secretary Angelo Reyes said Thursday that the drill rig, West Aquarius, is scheduled to leave Indonesia on Friday to proceed to the Dabakan prospect in the southern Philippines.

Reyes is hopeful that the entry of ExxonMobil, the world's largest publicly traded oil and gas company, "will entice more foreign companies to invest in the upstream oil industry."

ExxonMobil holds a 50% stake in Dabakan prospect, which is under 1,800 meters of water, one of the deepest prospects in the Philippines. The service contract covers 8,620 hectares in one of the country's most promising areas.

-By Cris Larano, Dow Jones Newswires; 632-848-5051; cris.larano@dowjones.com