Australian firm withdraws oil exploration with Phinma

PHINMA Petroleum and Geothermal Inc. (PPGI) said on Friday its Australian partner withdrew plans to explore petroleum resources on Palawan shores.

In a regulatory filing, PPGI said it received on the same day a deed of assignment from Century Red Pte. Ltd., assigning its 37.5 percent stake in Service Contract No. 55 (SC 55) to PPGI’s subsidiary Palawan55 Exploration and Production Corp., leaving the latter and Pryce Gases Inc. as the remaining co-contractors and owners of a total of 75 percent in SC 55.

PPGI did not elaborate the reason for the withdrawal. The transaction remains subject to approval of the Department of Energy (DoE).

SC 55 is a deep-water block in the southwest Palawan Basin which covers an area of 9,980 square kilometers. It is about 300 kilometers from the Malampaya gas field which has 2.7 trillion cubic feet of gas and 100 million cubic feet of condensate and which makes it a possible source of petroleum.

It is also near the cluster of four gas fields in offshore Sabah which has reserves of over 4 trillion cubic feet.

SC 55 Block B is 200 to 300 kilometers away from Reed Bank, one of the disputed areas of the Philippines and China.

Apart from SC 55, PPGI also has a 7.78-percent interest in SC 6 Block A and a 2.5-percent stake in SC 6 Block B, both in Northwest Palawan.

Earlier, PPGI announced its withdrawal to explore petroleum resources in Camotes Islands under SC 69 following a strong opposition blocking the company from conducting petroleum exploration activities in the area by various local government units and environmental groups, despite the exploration being included in its budget. PPGI obtained the DoE’s approval for the withdrawal earlier this month.

Phinma has a seven-year exploration mandate under the SC 69. This was divided into five subphases and may be extended three years and production of 25 years as well.

Last year, the company also withdrew a petroleum exploration activity in Eastern Visayas under SC 51. It did not elaborate.

Phinma Petroleum is a newly-acquired subsidiary of the Ayala Group under its energy holding firm AC Energy Inc.