The Manuel Pangilinan-led PXP Energy Corp. confirmed information coming from the Department of Energy (DOE) that its subsidiary Forum Energy Ltd. was in talks with China National Offshore Corp. (CNOOC) on possible partnership at Recto Bank, a disputed area at the West Philippine Sea where activities have been halted for almost six years.
PXP Energy said, however, that talks had not arrived at any agreement that needed announcing.
The company said in a disclosure to the Philippine Stock Exchange that negotiations with CNOOC were in relation to the memorandum of understanding signed between Manila and Beijing in 2018 on possible joint development of petroleum resources in the disputed areas.
In December 2014, the DOE declared a force majeure on the area covered by Service Contract No. 72, where Forum Energy is operator. In 2011, an exploration ship contracted by Forum Energy was reportedly almost rammed by a Chinese patrol vessel.
On Oct. 15, Energy Secretary Alfonso Cusi announced the lifting of force majeure or the moratorium of exploration activities in the West Philippine Sea.
Cusi added that concerned licensees including PXP Energy and Forum Energy were sent “resume-to-work” notices.
The DOE announcements were followed by a surge in the price of shares in PXP, which last traded at P11.58 apiece as of this writing from P5.15 on Oct. 15.
In an interview with ANC, Cusi reiterated that the lifting of the moratorium of exploration for oil and gas was a unilateral move on the part of the Philippines.
“But it is possible for Chinese companies to enter into partnership with the service contract holders,” Cusi said.
“What we want to achieve [in lifting force majeure] is to tap whatever petroleum resources there are and improve the standard of living of Filipinos,” he said, adding that Philippine sovereignty or dropping the arbitral decision that went in favor of the Philippines “is not involved” in the negotiations under the MOU with China. INQ