By Lenie Lectura - May 17, 2018
PHINMA Petroleum and Geothermal Inc.
(PPG) will take a loss on its interest in an exploration service contract after
the company decided to withdraw from it.
The company said on
Thursday that it has notified the Department of Energy (DOE) of its
withdrawal from Service Contract (SC) 51 in Eastern Visayas. It gave no other
details.
As a result, PPG said it would
recognize a loss of P32.7 million for the write-off of its share in the
expenditures incurred to date under SC 51.
“This is equivalent to 22 percent of
the company’s total assets as of March 31, 2018,” the company told the stock
exchange.
PPG has other interests in oil-gas
service contracts, namely: SC 55 in offshore West Palawan, SC 6 Block A and B
in Northwest Palawan, SC 69 in Camotes Sea and SC 50 in North Palawan.
These contracts, the company said,
are in various stages of studies and drilling.
The company recently said
geophysical studies in SC 55 would be conducted to review the prospects in the
area. The company has a 37.5-percent participating interest in SC 55.
It also announced plans to pursue a
construction of an liquefied natural gas (LNG) facility in Argao, Cebu.
The planned LNG facility will
include a 120-megawatt (MW) power plant, floating storage and regasification
unit.
The company said it signed in
November 2017 a joint-development agreement with three foreign companies for
the deployment of the LNG facility, which is targeted to be finished by 2023.
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