posted April 13, 2016 at 11:45 pm by Alena Mae S. Flores
Trans-Asia Petroleum Corp., the oil
and gas unit of Trans-Asia Oil and Energy Development Corp., is interested in
oil and gas explorations in Australia and Indonesia.
“Recent developments affecting
global prices of oil have emboldened your company to look into overseas
investment opportunities for possible partnerships and exploration ventures,” a
Trans-Asia Petroleum official said.
The company has engaged the services
of an Australian consulting group to scan upstream investment opportunities in
the region. It did not pursue a shortlisted farm-in deal in the northwest shelf
of Australia.
Trans-Asia Petroleum, however, is
still looking at another opportunity in west Australia and started evaluating
an asset in Sumatra, Indonesia.
“We engaged a consultant, we
shortlisted assets and this is what we came up with. There were a lot of
criteria. It’s either producing or near production phase because we want to
have recurring income. Also included is the country risk, fiscal regime, other
economics,” Trans-Asia Petroleum executive vice president Raymundo Reyes
Jr.
The company is acquiring interests
in selected petroleum service contracts covering areas usually in the exploration
stage. The company usually takes a minority interest due to the high risk and
capital extensive nature of the business.
“We are not looking at exploration
assets, it should be in development or production stage. Exploration takes
time, you have to drill and it may still be negative. If there’s discovery
already, in two to three years, there will be production,” Reyes said.
He said the company had started
evaluating the assets and that a farm-in agreement might be signed within the
year.
“The significant drop in global oil
prices has tapered exploration activity, with site specific projects being
reviewed by your company on the basis of prospectivity and economic potential,”
Tapet said.
Reyes said oil prices would not
likely hit $100 per barrel anytime soon due to a supply glut. “If we hit $50 to
$60 this year, we’re lucky,” Reyes said.
He said the company saw an
opportunity in the prevailing low oil price regime.
Trans-Asia Petroleum is actively
scouting for possible acquisitions amid depressed market values.
“Such assets could generate
near-term recurring revenues,” it said.
The company, which has stakes in
several service contracts, suffered a net loss of P10.69 million in 2015, lower
than the loss of P13.569 million it incurred in 2014.
Trans-Asia Petroleum has stakes
service contract 6 Block A (offshore northwest Palawan), SC 6 Block B (offshore
northwest Palawan), SC 51 (East Visayas), SC 55 (deepwater West Palawan), SC 69
(Central Visayas) and SC 50 (North Palawan).
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