The Energy Department gave the go-signal to Forum Energy Plc of UK to proceed with the exploration of the Reed Bank basin near the disputed Kalayaan Islands off South China Sea.
Energy Secretary Jose Rene Almendras said Forum Energy’s work program for service contract 72 located offshore West Palawan complied with the requirements of the department.
“Forum is okay,” Almendras said when asked if Forum passed the review of the petroleum service contracts. “Their work program is in order.”
The work program includes 3D seismic work over an area of up to 550 square kilometers over and around the Sampaguita gas discovery, and 2,200 line-km of high resolution 2D over existing leads within the 8,800 sq. km. contract area.
Forum Energy is expected to complete acquisition of the seismic data in the first half for technical analysis.
Almendras said “discussions are ongoing” regarding Forum’s planned exploration activities.
Almendras has threatened to cancel the service contracts of non-performing oil and gas companies.
Forum Philippines Holdings Ltd., a wholly-owned subsidiary of Forum, earlier signed a $10-million facility agreement with Philex Mining Corp. to partly finance the work program in SC 72.
Earlier results from a 248-sq. km 3D seismic survey over the SC 72 contract area in 2006 indicated 3.4 trillion cubic feet of gas at the Reed Bank basin.
“The company continues to have discussions with potential strategic partners for the purpose of accelerating the development of SC 72. However, no firm proposal is currently being considered,” Forum said.
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