Philex Petroleum subsidiary drops onshore exploration plans in Peru

by Lenie Lectura – November 20, 2015

from Business Mirror

A subsidiary of Pangilinan-led Philex Petroleum Corp. on Friday said it would no longer pursue exploration activities in Peru.

“Philex announces that Pitkin Petroleum Plc., a 53-percent owned subsidiary, has elected not to enter exploration subphase 2 in Peru Block XXVIII located in onshore Peru and has surrendered said block to the Peruvian government,” Philex Finance Controller Mark Rilles said.

The company did not say why it was pulling out of the project.

Philex is an oil and gas company. It is engaged in the exploration and production of crude oil and natural gas, through interests in petroleum contracts and holdings in resource-development companies.

It has two segments: oil and gas activities and coal-mining activities.

Philex has interests in petroleum service contracts in the Philippines and Peru held directly and through its subsidiaries, Pitkin and Forum Energy Plc. (Forum).

Prior to Friday’s announcement, Pitkin held a 25-percent participating interest in Peru Block Z-38 in offshore Tumbes Basin, and a 100-percent operating interest in Peru Block 28 in onshore Sechura Basin.

A number of seismic surveys have already been carried out over the block, including a 1,500-square-kilometer 3D seismic survey completed in 2010. The block license was in the third exploration period and the company had announced that there were preparations for drilling subject to rig availability.

In the Philippines it has a 29.14-percent participating interest in Service Contract (SC) 14 Block C-2 West Linapacan, a 70-percent operating interest in SC 74 Northwest Palawan and a 35-percent participating interest in SC 53 Mindoro.

Forum, meanwhile, has a 70-percent operating interest in SC 72 Recto Bank and a 100-percent operating interest in SC 40 North Cebu, among others.