Close  

Lifting of ban on Recto Bank exploration sought

/ 05:32 AM December 24, 2018

The MVP group, through an affiliate, has formally asked the Department of Energy to lift a moratorium on petroleum exploration at Recto Bank, which is a subject of a territorial dispute with China.

In a letter to Energy Secretary Alfonso Cusi dated Dec. 21, Forum (GSEC 101) Ltd. asked the government to lift the force majeure that the DOE imposed in December 2014.

ADVERTISEMENT

The group’s PXP Energy Corp. holds an economic interest of 53 percent in Service Contract No. 72 that covers an offshore exploration block at Recto Bank in Northwest Palawan.

Forum GSEC is a wholly owned subsidiary of Forum Energy Ltd., in which PXP has a 79-percent interest. Forum GSEC was writing in behalf of its partner Monte Oro Resources and Energy Inc.

FEATURED STORIES

“We see the lifting of the [force majeure] will enable [the consortium] to resume exploration and appraisal activities in SC 72 which include the drilling of two appraisal wells on the Sampaguita gas discovery,” Forum GSEC country representative Daniel Stephen P. Carlos wrote.

Based on interpretation of previous surveys made at Recto Bank, Sampaguita contains 2.5 trillion cubic feet of recoverable gas.

Such volume is comparable to that of the existing Malampaya gas project ran by another consortium led by Shell, and which is expected to reach depletion sometime between 2026 and 2029.

“To be an effective replacement for Malampaya gas, the development of SC 72 must commence no later than 2027 as it will take at least six years from start [up to the first flow of gas],” Carlos said.

He also raised concerns about security of operation as well as a possible reimposition of force majeure.

Carlos said Forum and its contractors would need assurances from the government that any offshore exploration activity in the SC 72 area “could be conducted without interference from domestic or foreign forces.”

SC 72 has been under force majeure since Dec. 15, 2014 due to the West Philippine Sea maritime dispute.

ADVERTISEMENT

A survey ship contracted Forum was reportedly almost rammed by Chinese patrol vessels. By 2015, activities at Recto Bank has been suspended as Malacañang pursued international arbitration over the territorial dispute.

Read Next
LATEST STORIES
MOST READ
Don't miss out on the latest news and information.
View comments

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Department of Energy, exploration at Recto Bank
For feedback, complaints, or inquiries, contact us.
opinion

Panic in the air

November 19, 2019 05:15 AM

opinion

Bottled air

November 19, 2019 05:13 AM

opinion

‘I will destroy her in public’

November 19, 2019 05:11 AM

newsinfo

Police find man in viral ‘Grand Taft Auto’ video 

November 19, 2019 05:10 AM

opinion

5 myths of Dutertismo (1) 

November 19, 2019 05:09 AM



© Copyright 1997-2019 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.