MANILA, Philippines — Businessman Manuel V. Pangilinan hopes to restart talks with China National Offshore Oil Co. (CNOOC) for a possible joint exploration in oil and gas prospects in the West Philippine Sea following the team up with Dennis Uy.
The partnership between PXP Energy Corp. and Uy’s camp is a “logical step” for both parties which are pursuing different developments in the gas sector, Pangilinan said during the Manila Electric Co. (Meralco) briefing yesterday.
Phoenix Petroleum Philippines Inc., Uy’s fuel retailer business, partnered with China’s CNOOC Gas and Power Group Co. Ltd. to study, plan, and develop an integrated LNG project in the country.
Meanwhile, PXP Energy is an upstream oil and gas company led by Pangilinan with a 78.98-percent interest operating stake in Service Contract (SC) 72—the contract to explore Recto Bank in the West Philippine Sea—through London-listed Forum Energy Plc.
“This would be a logical step for us to co-invest with him on the gas terminal and gas plant but there is no commitment at this stage,” Pangilinan said. “We thought that given that Dennis has signified an intention and desire to be part of PXP Energy in respect with SC 72.”
Moreover, the Pangilinan-Uy partnership also presents an avenue to renew talks with CNOOC for the possible joint exploration and development of the said contract.
“Part of the reason is, it looks like Dennis has established connections with CNOOC with respect to the gas terminal and gas plants. We thought, it might be good to bring Dennis as well. If he knows CNOOC fairly well enough,” Pangilinan said.
“In SC 72, CNOOC has been there. We’d like to renew our conversation with them in respect to SC 72. I suspect that will not happen until a bilateral [agreement] has happened between the Philippine and Chinese government,” he said.
Forum had previously engaged in talks with CNOOC, China’s state-owned oil producer, for a possible commercial arrangement covering Recto Bank.
SC 72 is among the projects affected by the moratorium issued by the Department of Energy (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, Secretary Alfonso Cusi is pushing for the lifting of the moratorium on all exploration and drilling works in the disputed waters.
He, however, said this is still dependent on the diplomatic discussions between the Department of Foreign Affairs (DFA) and its Chinese counterpart.