SMF - Just Installed!
MANILA - A member of Congress has urged the Department of Energy (DOE) to reactivate the oil and gas exploration ventures in the West Philippine Sea that were temporarily suspended in 2015 on account of the country’s maritime dispute with the People’s Republic of China.< snipped >To date, all oil and gas exploration activities with respect to Service Contracts (SCs) 58, 72 and 75, each covering large blocks in Northwest Palawan, remain suspended.Of the three projects, SC 72 is widely regarded as the most promising, as it covers the gas-rich Reed Bank, also known as Recto Bank, at the northeast end of the Spratly archipelago.Reed Bank is believed to hold the bulk of the West Philippine Sea’s estimated 55.1 trillion cubic feet of gas and 5.4 billion barrels of oil reserves, based on a previous study by the USEnergy Information Administration.Reed Bank’s Sampaguita field alone could contain up to 4.6 trillion cubic feet of gas plus some 115 million barrels of oil -- much larger than Malampaya’s 2.7 trillion cubic feet of gas and 85 million barrels of condensate.The largest hydrocarbon deposit ever discovered in the Philippines, Malampaya produces 146 billion cubic feet of gas every year. The fuel drives three of Luzon’s largest power plants based in Batangas. SC 72 covers 880,000 hectares. It is operated and 70-percent held by Forum Energy Plc, with Monte Oro Resources and Energy Inc. as 30-percent partner.
The Philippines suspended exploration at the Reed Bank, which it calls Recto Bank, in late 2014, as it pursued international arbitration over territorial disputes.The bank is in waters claimed by China.< snipped >Exactly a year ago, the Permanent Court of Arbitration in The Hague invalidated China’s claim to sovereignty over most of the South China Sea.The ruling, which China refused to recognize, clarified Philippine sovereign rights in its 200-mile Exclusive Economic Zone to access offshore oil and gas fields, including the Reed Bank, 85 nautical miles off its coast.< snipped >The Philippines, which relies overwhelmingly on imports to fuel its fast-growing economy, is under pressure to develop indigenous energy resources. Its main source of natural gas, the Malampaya field near the disputed waters, is due to run out in less a decade.PXP’s Reed Bank prospect has indicated natural gas yield potential.
In the face of warming relations between China and the Philippines, business tycoon Manuel V. Pangilinan on Thursday said the government should allow drilling and exploration activities to resume in the West Philippine Sea."I think it's about time for us to engage the government, particularly Secretary Cayetano, whether we could actually get the government to allow us to restart the works that were postponed," Pangilinan told reporters on the sideline of a press briefing in Pasig City.< snipped >"Because all of the pronouncements appeared to have been made between the Philippines and China are moving in positive directions," Pangilinan noted.In 2015, the Department of Energy suspended all drilling and exploration works in disputed waters, particularly in parts of the West Philippine Sea covered by Service Contract (SC) 72 in the Reed Bank, citing force majeure as the area was the subject of a territorial dispute between China and the Philippines.
