Gov’t to suspend Forum Energy exploration in West PH Sea

Rappler.com

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Gov’t to suspend Forum Energy exploration in West PH Sea
The energy department advises the company, holder of Service Contract 72, to 'hold-off' exploration due to developments between the PH and Chinese governments

MANILA, Philippines – The Department of Energy (DOE) is set to suspend the permit given to Forum Energy to conduct oil drilling activities in the disputed area of the West Philippine Sea (South China Sea).

The British company, led in the Philippines by businessman Manuel Pangilinan, currently has a contract to explore on Recto (Reed) Bank area.

Energy Secretary Carlos Jericho Petilla said on Monday night, February 23, that the Department of Foreign Affairs (DFA) advised the department to “hold-off” exploration activities in the area due to developments between the Philippine and Chinese governments.

“We just don’t want the project to be the culprit just in case they point to it as the reason,” Petilla said, referring to Forum Energy.

Forum Energy’s service contract (SC-72) from the government covers the exploration of an 8,800-square-kilometer area in offshore west Palawan. The area is said to contain prospective resources of as much as 16.6 trillion cubic feet of gas and 416 million barrels of oil.

Petilla said exploration activities are suspended until summer of 2015. “Forum has been informed about it,” he said.

The suspension will affect Forum Energy’s conduct of a geotechnical survey planned this year, which was recently approved by the DOE. The survey was suppose to aid Forum Energy in determining which areas have strong potential for oil and gas.

The company’s earlier plans to drill two appraisal wells was already delayed due to the dispute.

The Philippine government awarded SC-72 to Forum Energy in 2010 to help assert the country’s sovereign rights over parts of the West Philippine Sea.

In January 2013, the Philippine government extended Forum Energy’s permit to August 14, 2015. In July 2014, the permit was again extended to August 15, 2016.

China criticized the Philippines for the permit extension. “Without permission from China, oil and gas exploration by any foreign companies in waters under China’s jurisdiction is illegal and invalid,” Chinese Foreign Ministry spokesman Hong Lei said.

Petilla, on the other hand, said that he sees nothing wrong in granting the permit extension. “We are looking at Philippines laws right now and, under that law, we did not violate anything as far as we are concerned,” he said.

As China complained over Forum Energy’s permit extension, the Philippines slammed China for deploying ships and conducting regular “sovereignty patrols” in the disputed waters. Also, in 2011, the Philippines accused Chinese vessels of harassing a Philex-contracted exploration vessel on Recto Bank.

Despite this, Pangilinan earlier said Forum Energy was negotiating with the state-run China National Offshore Oil Corporation for the joint exploration of Recto Bank. His only condition, Pangilinan said, was for CNOOC to respect the Philippines’ rights over Recto Bank. – Rappler.com

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