Malaysian firm may lose Sulu petrol contract | Inquirer Business

Malaysian firm may lose Sulu petrol contract

/ 02:34 AM December 31, 2013

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.

Article continues after this advertisement

While government is streamlining the application process for potential investors, it is also more strict when monitoring work programs, Oca said.

FEATURED STORIES

“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.

Article continues after this advertisement

Otherwise, contracts would get canceled and the vacated areas could be awarded to other groups.

Article continues after this advertisement

Ranhill was awarded SC64 during the Philippine Energy Contracting Round of 2005.

Article continues after this advertisement

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.

Article continues after this advertisement

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

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our daily newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

 

TAGS: contracts, Energy, Malaysia, oil and gas-upstream activities, petroleum exploration, Philippines

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our newsletter!

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

© Copyright 1997-2024 INQUIRER.net | All Rights Reserved

This is an information message

We use cookies to enhance your experience. By continuing, you agree to our use of cookies. Learn more here.