Published
December 4, 2018, 10:00 PM By Myrna M. Velasco
PXP Energy Corporation
will be seeking the imprimatur of its board of directors so it can formally
send correspondence to relevant government agencies on its bid for the lifting
of oil exploration moratorium at the block covered by its Service Contract 72.
The company was tied
into a force majeure condition when the government enforced drilling moratorium
at the Recto Bank following the Philippines’ diplomatic tussle with China
roughly four years ago.
On the moratorium
lifting, PXP Energy President Daniel P. Carlos said “we will discuss that with
our Board… we will request to lift the force majeure which was enforced by
government.”
Energy Secretary
Alfonso G. Cusi personally told Carlos that PXP Energy can already send formal
correspondence to the DOE on the moratorium lifting “and the government will
just act on it accordingly.”
The Department of
Foreign Affairs (DFA) previously indicated that the energy department can
already take upon itself to decide on matters relating to the concerns of
investors on petroleum exploration – including the need to free up the earlier
mandated prohibition of exploration and drilling at the deemed ‘conflict areas’
within the West Philippine Sea.
Carlos said the
scheduled drilling of two wells will command an investment of US$60 million. In
essence, per well will cost US$30 million.
He qualified that the
company – with its new partners Dennison Holdings of businessman Dennis Uy and
China National Offshore Oil Corporation (CNOOC) – will have 20 months to
complete the next phase of the SC 72 work program from the lifting of the
exploration moratorium.
The depth of the
drilling, Carlos said, will be up to 4,000 meters as earlier assessed. Beyond
the scheduled drilling, the company is also planning to carry out extended
seismic survey in an area proximate to its block.
On the partnership with
CNOOC, PXP noted that the next step will be formation of committees to flesh
out their work plan and other terms of partnership.
Carlos indicated there
had been no further discussion yet with CNOOC on this sphere, but they are
expecting that work planning will advance in the coming months.
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