Phinma cancels Visayas oil exploration venture

It has withdrawn service contract 69 in Camotes Islands following strong opposition by local government units and environmental groups

Phinma would have had a period of seven years of exploration under SC 69.

The Department of Energy (DoE) has given the greenlight for Phinma Petroleum and Geothermal Inc. to abandon its plan to explore oil and gas resources in the Visayas.

In a disclosure to the stock exchange on Wednesday, Phinma said that it has withdrawn service contract 69 in Camotes Islands following strong opposition by local government units and environmental groups.

Phinma said it received on the same day the DoE’s notice of approval, pending settlement of financial obligations.

Phinma said SC 69 was already part of its 2019 budget. It would have had a period of seven years of exploration under SC 69. This was divided into five subphases and could have been extended for another three years and have a production period of 25 years.

Similarly, the company also withdrew last year a petroleum exploration project in Eastern Visayas under SC 51. Phinma has not elaborated on its reasons for halting SC51.

In July this year, Phinma Petroleum’s new owner, the Ayala Group, renamed the listed company to ACE Enexor, Inc. The move was in line with the group’s management reshuffle which included the election of a replacement director, a change in the composition of board committees, and amendments to the company’s articles of incorporation and by-laws.

The Ayala Group, through AC Energy, took control of Phinma Energy Corp., Phinma Petroleum’s parent firm, through a “mutually strategic agreement.” This brought the Ayala Group’s ownership to 51.48 percent for P3.42 billion.

AC Energy acquired the combined stake of Phinma Corp. and its parent Philippine Investment Management Inc. (PHINMA) in Phinma Energy.