DOE approves Linapacan oil block share restructuring

by Myrna Velasco, 31 March 2015
from Manila Bulletin

The Department of Energy (DOE) has approved the farm-in of 58.29-percent aggregate interest in West Linapacan petroleum block in Northwest Palawan basin, but Australian firm interest-holder Nido Petroleum Ltd. is objecting to the shares re-alignment.

The energy department’s approval to that point mainly delved with the termination of interests of Pitkin Petroleum and operator RMA West Linapacan Ptd Ltd. in the block.

Effectively, there had been purported farm-in agreements that reverted interests to Philodrill Corporation, Oriental Petroleum & Minerals Corporation, Linapacan Oil Gas & Power Corporation, Forum Energy Philippines, Cosco Capital Inc. and PetroEnergy Resources Corporation.

But Nido Petroleum which holds 22.28-percent interest in the venture, has indicated, that it was not a party to and had not been properly apprised of the farm-in deal.

“Nido was not a party to these farm-in agreements and Nido’s existing 22.279 percent participating interest in the project is therefore not altered by the termination notices,” the Australian firm has noted.

The company added that it “remains committed to progressing a West Linapacan re-development project and will update the market further if there are any material developments.”

In a related development, interest holder PetroEnergy has indicated to media that the interest re-alignment brought its shares in the West Linapacan venture to 4.137 percent.

The West Linapacan block straddles 300 to 350 meters of water which is approximately 60 kilometers offshore from Palawan island. It is under Service Contract 14C as awarded by the energy department.

Initial seismic data portend of prospective 18,000 barrels per stream day of oil yield, but such has yet to be validated by planned re-entry at the block.

Prior to the termination of interests of some project shareholders, a front-end engineering design work was already being pursued and such could have been their determining factor whether or not to advance investment plans.

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