Malaysian firm may lose Sulu petrol contract
Malaysian conglomerate Ranhill Berhad may lose its petroleum exploration contract in the Sulu Sea with the Department of Energy (DOE) for failing to follow strict work timelines.
DOE Undersecretary Ramon Allan V. Oca said in a briefing that other service contracts had been canceled for similar non-compliance with work commitments.
“Another is up for cancellation, a foreign contractor in the Sulu Sea,” Oca said, and later identified the company as Ranhill.
While government is streamlining the application process for potential investors, it is also more strict when monitoring work programs, Oca said.
“That’s to make sure only serious investors and those with capability can participate,” he said.
Energy Secretary Carlos Jericho Petilla had said that unless there was justifiable cause and proper coordination with government, SC operators must strictly follow their approved work programs.
Otherwise, contracts would get canceled and the vacated areas could be awarded to other groups.
Ranhill was awarded SC64 during the Philippine Energy Contracting Round of 2005.
In 2006, Ranhill Berhad and minority partner Phil-Mal PetroEnergy Corp. signed their service contract with the Philippine government (acting through the DOE), on the exploration, development and exploitation of petroleum resources for SC 64.
In a statement, Ranhill said SC64 covers 12,600 square kilometers in the Sulu Sea.
The site comprises a portion of the Sandakan Basin and contains four previously drilled wells and 5,200 km of seismic lines, it added.
Ranhill said several international oil companies, including Arco and Occidental, had studied the area in the early 1970s and concluded that the area was rich in oil and gas. Ranhill’s current oil and gas investment in the Philippines includes another block, SC49, in Cebu.—Riza T. Olchondra
