Forum Energy Plc has secured an approval from the Energy Department to proceed with a geotechnical survey of gas-rich Recto Bank west off Palawan, despite the territorial dispute with China over the West Philippine Sea.
Philex Petroleum Corp. chairman Manuel Pangilinan said the department gave the go signal for the conduct of the survey over Service Contract No. 72, an area that encompasses the Reed Bank. The company, however, said it was still keenly watching developments between the Philippines and China.
“I think so,” Pangilinan said, when asked about the update on the department’s approval of the survey in the first half that would determine the best areas for exploratory drilling.
SC 72 covers an 8,800-square-kilometer area west off Palawan. It is estimated to contain prospective resources of as much as 16.6 trillion cubic feet of gas and 416 million barrels of oil.
China exerts its claim over the West Philippine Sea including the gas and oil rich Recto Bank (Reed Bank). China’s claim has resulted in geopolitical tensions in the area.
“Survey was approved by DoE as part of work program for 2015, but [we are] still waiting for their advice on schedule,” said Philex Petroleum president Carlos Pablo.
Pablo said the company remained bullish over the prospects of SC 72 despite the delays in exploration. “SC 72 remains a key asset of Forum,” Pablo said earlier.
Philex Petroleum holds a 60.45-percent total direct and indirect interest in Forum, a British company which has a 70-percent operating interest in SC 72.
The geotechnical survey, originally proposed in the second quarter of 2015, will prepare Forum to determine areas which have strong potential for oil and gas.
The Energy Department extended Forum’s exploration license by another year or until August 2016.
“We are still interested [in SC 72],” Pangilinan said.
Pangilinan said earlier drilling could only be conducted in the March to May period, because of weather considerations. “The earliest we can work an appraisal well is March to May of 2016,” he said.