MANILA, Philippines — Upstream oil and gas firm PXP Energy Corp. is considering asking the government to lift the force majeure on its oil and gas contracts located in the disputed waters after the Department of Energy (DOE) said companies affected by the moratorium can make an appeal in line with its “Explore Explore Explore” program.
Energy Secretary Alfonso Cusi said companies affected by the oil and gas exploration moratorium in the West Philippine Sea could ask the agency to lift the suspension order on any work program.
The agency will accept nominations of areas for oil and gas explorations even beyond its pre-determined areas under the Philippine Conventional Energy Contracting Program (PCECP).
Launched recently, PCECP is a program that offers 14 pre-determined areas. It also offers the option for investors to propose their own exploration area, making oil and gas exploration a dynamic investment prospect for players in the energy sector.
“Yes, they can apply. That is why even in our PCECP, we have 14 pre-determined areas. We offer these to prospective investors but we do not limit them to that. If they have identified and preferences that are available, they can apply also,” Cusi said.
The DOE imposed a moratorium on exploration and drilling works in 2014 and 2015 amid rising maritime tension with China at that time.
Among the affected projects include Service Contracts (SC) 72 and 75, which were under companies led by businessman Manuel V. Pangilinan.
SC 72, which covers Recto (Reed) Bank in the disputed territory, is 78.98-percent owned by PXP Energy through London-listed Forum Energy Plc. Meanwhile, PXP Energy has a direct operating interest of 50 percent in SC 75.