DOE grants Force Majeure for Service Contract 75

By Juzel L. Danganan

MANILA, Oct. 1 (PNA) — The Department of Energy (DOE) has granted the Force Majeure for Service Contract 75, which is located in the northwestern Palawan Basin.

In a disclosure from the Philippine Stock Exchange on Thursday, Philex Petroleum said “all exploration work at SC75 shall be immediately suspended effective from the end of its first sub-phase on Dec. 27, 2015 until the date the DOE notifies the company to resume petroleum-related activities.”

The company added the second sub-phase of SC75 will be put on hold until further notice. It will extend the term of sub-phase 2.

No reason was provided, but the certain service contract is near the other service contracts that are also under force majeure due to the territorial dispute with China. It includes SC 58 and 72.

Philex Petroleum has the majority interest in the field at 50 percent, while the Philippine National Oil Company (PNOC) has a 35-percent stake and PetroEnergy Resources Corp. (PERC) has a 15-percent. (PNA)