DOE clears Phinma exit from SC 69

MANILA, Philippines — The Department of Energy (DOE) has cleared Phinma Petroleum and Geothermal Inc. (PPGI) to exit from Service Contract (SC) 69 in Eastern Visayas following strong opposition to conduct petroleum exploration activities in the area.

PPGI, which will  be renamed to ACE Enexor Inc. after it was acquired by AC Energy Inc., disclosed that it received the DOE notice approving its relinquishment of SC 69 in the Camotes Sea.

Its withdrawal from the project is pending settlement of all remaining financial obligations, which the company has previously earmarked in its 2019 budget.

In June last year, the SC 69 consortium—composed of PPGI and Frontier Gasfields Pty. Ltd.—informed the DOE of its plan to pull out from the exploration block amid strong opposition from various stakeholders, including several local government units (LGUs) and non-government organizations (NGOs).

Opposition stemmed from the issuance of local ordinances and resolutions to the project.

PPGI, the operator of the project, earlier said this makes the conduct of petroleum exploration business in the area very challenging, if not impossible.

In the same year, PPGI also decided to give up its interest in SC 51 in northern Leyte, where it estimated to recognize a loss of P32.7 million for the write off of its share in the expenditures incurred under SC 51.

After acquiring the energy companies of the Phinma group, AC Energy said it would continue to develop its remaining oil and gas assets, namely SC 6 and SC 55.

Located in northwest Palawan, SC 6 is divided into two blocks where ACE Enexor owns a 7.78 percent interest in Block A and 2.475 percent carried interest in Block B.

Meanwhile, the company is the operator of SC 55, a prospect in west Palawan.

The SC 55 consortium entered sub-phase 5 starting Aug. 26, where it will be drilling one ultra deepwater well at the cost of at least $3 million.

The consortium has committed to drill one ultra deepwater (water depth beyond 1,500 meters) well in the second quarter of 2020.