PXP Energy unit seeks damages vs partner in Peru wells
The Manuel V. Pangilinan-led group of companies’ upstream petroleum business is having tough luck here and abroad as a unit of PXP Energy Corp. seeks to claim at least $100 million for damages related to an Australian partner’s breach of obligation to drill another well in search of oil and gas in Peru.
PXP Energy said in a disclosure its subsidiary Pitkin Petroleum Z-38 SRL submitted on Tuesday a notice of dispute to Karoon Gas Australia Ltd.
This, as PXP Energy’s Petroleum Service Contract No. 72 concession at Recto Bank, held through Forum Energy, remained in the doldrums as talks between Manila and Beijing for a potential joint development in that area in the West Philippine Sea seemed to have stagnated.
Despite an announcement by the Department of Energy that the force majeur status of SC 72 has been lifted and that they can now resume exploration activities, Forum Energy is unable to return to site.
A force majeure at SC 72 was declared in December 2014 amid heightened tensions related to the territorial dispute with China.
There were also overtures of a possible direct partnership with Beijing-based CNOOC (China National Offshore Oil Corp.) group, but this had dissipated into the purported exploration of cooperation between the two governments.
When asked how exploration of activities could resume at the West Philippine Sea, the DOE could only say it was looking to the Department of Foreign Affairs—the agency involved in the informal talks—for their cue.
In Peru, PXP Energy is claiming damages for Karoon Gas’ alleged failure to drill a second well in the offshore Peru Block Z-38.
Pitkin Petroleum Ltd, a 53.43-percent owned subsidiary of PXP, has a 25-percent participating interest in Peru Block Z-38 through its wholly owned subsidiary, Pitkin Petroleum Z-38 SRL.
The Peru consortium believes that their prospect dubbed “Marina” contains an estimated 256 million barrels of crude oil.
