ENEX-led SC 55 gets extension to drill in West Philippine Sea

MANILA, Philippines — A consortium led by ENEX Energy Corp., which is majority owned by the Ayala group’s listed energy platform ACEN Corp., has been granted by the government an extension to drill in Service Contract No. 55 in the West Philippine Sea.

ENEX, in a stock exchange filing, said the Department of Energy (DOE) has granted the request of its subsidiary, Palawan55 Exploration and Production Corp., to extend by 18 months the deadline to drill a well under SC 55.

“Given that SC 55 is currently still on force majeure, Palawan55 shall have a total of 23 months (the five months remaining plus the 18-month extension) from the lifting of force majeure to drill the committed well,” the DOE said.

The DOE had earlier found basis to place SC 55 under force majeure from Dec. 6, 2022 until such time that a clearance to proceed with exploration activities in the West Philippine Sea has been issued by the government.

Palawan55 is 69.35-percent owned by ENEX and 30.65-percent owned by ACEN.

It is the operator of SC 55 with a 75 percent share.

The SC 55 consortium in December last year requested the DOE a declaration of force majeure on the commitment to drill one deep water well by April 2023 due to the geopolitical issues in the West Philippine Sea and in light of legal and regulatory developments in the upstream industry.

“With the ongoing territorial dispute surrounding the West Philippine Sea, securing partnerships for the exploration has been a major challenge. This has prompted us to seek the enforcement of force majeure until such time when the geopolitical issues are resolved,” ENEX chairman Eric Francia earlier said.

Formerly known as ACE Enexor Inc., ENEX in December last year changed its name to the present one to highlight the corporation’s focus on energy transition.

ENEX’s primary business is the exploration and production of crude oil and natural gas through interests in petroleum contracts and through holdings in resource development companies with interests in petroleum contracts.