Shell gives up stake in Palawan contract, but eyes other areas

Royal Dutch Shell remains keen on investing in the Philippine energy sector, despite having given up its stake in one of the petroleum service contracts covering offshore Palawan.

Proof is that Shell is looking to bid for new oil and gas areas being offered by the government for exploration and development under the Philippine Energy Contracting Round 4, said Energy Undersecretary Jose M. Layug Jr.

“Shell has expressed to the Department of Energy (DoE) its continued interest in exploration opportunities in the Philippines and will bid for new areas,” he said.

Layug was reacting to a recent filing made by Australian firm Nido Petroleum Ltd., which disclosed that Shell Philippines Exploration BV (SPEX) had relinquished its 45-percent interest in Service Contract 54B.

“We understand that the withdrawal of SPEX from SC 54B is part of its risk management strategy given Shell’s current portfolio of acreages under its service contracts with the DoE and its proactive search and participation in PECR 4,” Layug said.

“Inasmuch as Shell is looking for more exploration opportunities in the Philippines under PECR 4 and beyond, Shell is consolidating its exploration plans and pooling financial and technical resources for development of oil and gas in the Philippines,” he added.

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