MANILA, Philippines - Forum Energy, a company owned by businessman Manuel V. Pangilinan, has asked the Department of Energy (DOE) to allow it to resume exploration work in the disputed Recto Bank in the West Philippine Sea, Energy Secretary Carlos Jericho Petilla said in a press conference yesterday.
However, Petilla said the DOE has yet to decide on the matter given the ongoing territorial dispute with China.
“We will still talk to them (Forum) on why they’re interested and what is the reason why we should lift it (the moratorium),†Petilla said.
Forum Energy holds a 70 percent stake in Service Contract 72, which covers Recto Bank.
However, in August 2012, the DOE issued a moratorium on all exploration and drilling works in the area due to an ongoing territorial dispute with China.
In the same briefing, Rino Abad, director of the DOE’s Energy Resource Development Bureau said Forum Energy has sent the DOE a letter two days ago asking the department to lift the moratorium.
“They want to continue. They wrote a letter to the DOE two days ago. They want the moratorium lifted. If we approve that, they can proceed with the drilling,†he said.
Petilla said Forum is still very much keen on continuing the project.
“They’re still interested in the service contract. They are talking to CNOOC on a commercial basis. Whatever their arrangement is, they have to present it to us to see if they are violating any Philippine law. They’ve been wanting to drill. The question is can they actually drill?†Petilla said.
CNOOC or China National Offshore Oil Co is China’s state-owned oil producer.
Forum and CNOOC have been in discussions for a possible commercial arrangement for exploratory works in the disputed are, but talks died down Pangilinan said in April.
The two parties opted to talk on their own amid an ongoing territorial dispute between the Philippines and China. Manila has brought the matter to the United Nations, but the issue remains pending with the international body.
The Recto Bank area is estimated to contain prospective resources of as much as 16.6 trillion cubic feet of gas and 416 million barrels of oil.
Monte Oro Resources and Energy Inc. holds the remaining 30 percent stake in the service contract.
The Energy department has granted Forum Energy an extension to August 2015 to complete the second sub-phase obligations of drilling wells on SC 72.
The department has extended Forum’s work program by two years to August 2015 from the original deadline of August 2013 to allow it to complete its obligations under the service contract.
Forum sought an extension in the government-mandated work program because of delays in their drilling activities, dragged largely by the geopolitical issues between the Philippines and China.
Philex Mining owns 64.45 percent of Forum Energy through its interests in FEC Resources, Inc. and Philex Petroleum Corp. The remaining interest is held by other shareholders.