UK's Forum Energy has yet to submit formal work program to DOE

MANILA, Philippines - UK-based Forum Energy Plc. has yet to submit its formal work program to the Department of Energy (DOE), a top energy official said.

Energy Secretary Jose Ibazeta said the company is still finalizing its final work program to be submitted anytime soon.

“Their SC (Service Contract 72) was awarded by Secretary (Angelo) Reyes, for exploration of the SC. They have to submit a work program. I think, they’re in the process of submitting it within a certain period of time,” he said.

In March this year, Forum Energy disclosed that it has yet to firm up its work program. The DOE has yet to disclose the signed contract with Forum Energy for the SC 72 exploration.

The DOE earlier said Forum Energy has fulfilled all the necessary requirements such as completing the work program for Geophysical Survey and Exploration Contract (GSEC) 101 so the department decided to approve the pre-negotiated contract.

GSEC 101 was awarded in July 2002 and the consortium was allowed to conduct seismic studies in the area for four years.

The conversion into SC 72 from GSEC 101 will not only allow Forum Energy to conduct drilling activities for seven years but it will be given an option to carry out production activities just in case they discover reserves in the area for another 25 years.

Forum Energy obtained clearance from the DOE to start drilling in the South China Sea under SC 72.

According to Forum Energy, SC 72 is located within the 200 nautical mile exclusive economic zone (EEZ) based on Republic Act 9522 or the Philippine Archipelagic Baseline Law signed on March 10, 2009.

RA 9522 defines the archipelagic baselines of the Philippines while affirming Philippine sovereignty and jurisdiction over these areas which include SC 72. The enclosing Reed Bank area has been subject of numerous exploration campaigns in the past under the Philippine contractual regime.

The first petroleum contract in the area was awarded by the then Ministry of Energy in 1975. The following year, the first of the seven wells was drilled. Over 6,000 kilometers of 2D seismic and some 250 square kilometers of 3D seismic have been acquired both by foreign and Filipino companies through exploration contracts signed by the Philippine government. 

The GSEC 101 licence in which Forum Energy has a 70 percent interest is the company’s principal asset, and is situated offshore west of Palawan Island in the South China Sea.

In 2006, results from a 248 square kilometer 3D seismic survey over the licence area confirmed a minimum of 3.4 trillion cubic feet proven gas in place with significant upside potential.