MANILA, Philippines - The Department of Energy (DOE) has thumbed down the proposed farm-in agreement for Service Contract 6 in Northwest Palawan primarily due to its proponents failure to meet the required financial capability, Trans-Asia Oil and Energy Development Corp. disclosed to the Philippine Stock Exchange (PSE) yesterday.
The farm-in agreement proposes to transfer the 70 percent interest and right to operate SC 6 to three companies, namely Peak Oil and Gas Ltd., Blade Petroleum and VenturOil Philippines Inc.
Trans-Asia Petroleum, a wholly-owned subsidiary of Trans-Asia Oil and Energy Development Corp., has a 14.063 percent participating interest in SC 6 Block B. Other consortium members are Philodrill, Nido Petroleum Ltd., Oriental Petroleum & Minerals Corp., Forum Energy Philippines Corp. and Alcorn Petroleum & Minerals Corp.
In December 2011, Philodrill executed a deed of assignment, transferring the 70 percent participating interest in SC 6B – located northwest of Palawan – to the three companies.
However, the energy department said that after a thorough review of the documents, the documents were deemed not enough to completely evaluate the application.
“Further, Philodrill failed to comply and submit additional updated documents as requested in our letter… Since then and up to now, all the farminees have been unable to comply with the DOE’s directive to submit additional documents which are supposed to aid the DOE in properly determining whether the farminees and applicant for operatorship are qualified to perform the work obligations in SC 6B,†the energy department said in an earlier letter to Philodrill.