MVP seeking technical partner to explore WPS

The consortium that was awarded Service Contract 72 for the exploration of oil and gas in an area in the West Philippine Sea, is looking for a technical partner before the project can proceed, according to Manuel V. Pangilinan (MVP) who heads the consortium.

 MVP said the consortium, which includes three partners, had initially talked to China National Offshore Oil Corp. (CNOOC) as a possible fourth technical partner but nothing has materialized.

The consortium includes Roberto Ongpin’s Atok Big Wedge, which owns a 20% stake in Forum Energy, and Monte Oro Resources & Energy Inc. (MORE) of Enrique Razon.

Service Contract 72 covers the area in the Recto Bank Basin, west of Palawan Island.

Monte Oro Resources holds a 30% direct participating interest while Forum Energy holds the remaining 70% participating interest in the Service Contract through its subsidiary, Forum (GSEC 101) Ltd.

In 2020, MVP’s PXP Energy submitted a preliminary and revised work plan to the Department of Energy to explore for oil and gas in the West Philippine Sea following the lifting of the moratorium on drilling activities in the disputed area.

PXP has yet to undertake a survey of the area to determine where to place the oil rigs.

In August 2012, the DOE issued a moratorium on all exploration and drilling works in the area due to the territorial dispute with China, prompting PXP to seek an extension of the work program.

The DOE later extended Forum’s exploration license by another year or from August 2015 to August 2016 due to delays in the work program.

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. In 2018, PXP and CNOOC signed a memorandum of understanding to jointly explore SC 72 but negotiations stalled because the government had not yet lifted the moratorium on exploration.