BUSINESSMAN Manuel V. Pangilinan recently met with two Chinese exploration firms and discussed issues related to Service Contract (SC) 72.
“Only one or two months ago, but not with CNOOC (China National Offshore Oil Corporation),” PXP Energy Chairman Manuel V. Pangilinan said when asked if PXP has met with CNOOC recently.
He did not reveal the identities of two Chinese firms. He also did not reveal what transpired during the meeting.
Forum Energy Ltd., in which PXP holds a direct and indirect interest of 79.13 percent, has a 70-percent participating interest in SC 72, also in Northwest Palawan, through its wholly owned subsidiary Forum. PXP has a total economic interest of 54.36 percent in SC 72.
“We don’t have the authority on the sovereignty issues. We’re walking on egg shells, because if you talk about sovereignty—that’s them (Philippine and Chinese governments) and we have to respect that,” he said.
Last month, the Department of Energy (DOE) granted force majeure to the work commitments involving SC 72 and SC 75 in the West Philippine Sea.
A force majeure event entitles the contractors to be excused from the performance of their respective obligations, as well as to the extension of the exploration period under the service contracts.
The agency considered the concerns raised by PXP Energy and Forum following the suspension of exploration activities under SC 75 and SC 72 last April.
It also said that the total expenses of $5.18 million and $8.60 million, respectively were incurred as a result of the directive to suspend SC 75 and SC 72 activities.