PXP Energy eyes new areas for development

Danessa Rivera – March 4, 2019 – 12:00am
from The Philippine Star

MANILA, Philippines — Upstream oil and gas firm PXP Energy Corp. is looking at pre-determined oil and gas prospects as well as new areas with potential development under the government’s Philippine Conventional Energy Contracting Program (PCECP).

PXP Energy chairman Manuel V. Pangilinan said the company is keen on participating in 14 pre-determined areas (PDAs) under PCECP of the Department of Energy (DOE).

“I’m sure we will do that, if there’s a deadline, then we will comply with government requirement,” Pangilinan said.

Meanwhile, PXP Energy is also interested in nominating other prospects near Recto Bank.

“Of course, we’re looking,” Pangilinan said.

PXP Energy, through London-listed Forum Energy Plc., has an 78.98-percent interest operating interest stake in Service Contract (SC) 72—the contract to explore Recto Bank in the West Philippine Sea.

SC 72 is among the projects affected by the moratorium issued by the DOE on all exploration and drilling works in December 2014 and 2015 amid the rising maritime tension with China.

Amid rising fuel prices and the impending expiration of the Malampaya contract, DOE Secretary Alfonso Cusi had earlier pushed for the lifting of the moratorium on all exploration and drilling works in the disputed waters.

PXP Energy is awaiting direction from government after it asked the DOE to lift the force majeure on its oil and gas contracts located in the disputed waters.

Once the moratorium is lifted, PXP Energy and its partners are eyeing to spend anywhere from P4 billion to P5 billion to find and develop the country’s new Malampaya project.

The SC 72 consortium’s exploration work program includes geotechnical surveys and the drilling of two wells in the Sampaguita gas discovery and 3D seismic surveys for the North Bank prospect north of Sampaguita.

The consortium has estimated a budget of $80 million to $100 million (or P4.24 billion to P5.29 billion) in the next two years to meet its work program.

The Sampaguita discovery, which has the potential to contain approximately 2.5 trillion cubic feet (TCF) of recoverable gas, could be the country’s new source of gas and replacement for the Malampaya project.

SC 38, the license that allows the exploration in the Malampaya gas field in northwest Palawan, will expire in 2024 but this can be applied for extension with the DOE.