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Philex Petroleum wants to explore Reed Bank anew

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Cathy Yang, ABS-CBN News

<figure class="op-interactive"><iframe allowfullscreen="" frameBorder="0" height="350" src="https://www.youtube.com/embed/Htc_kwMfe_A?rel=0&amp;showinfo=0" width="510"></iframe></figure>Manny Pangilinan-led Philex Petroleum (PXP) is looking at farm-in contracts with foreign partners once its Reed Bank (Recto Bank) natural gas project is restarted by the Department of Energy (DOE).Company president Dan Carlos, in an exclusive interview on ANC&#x27;s &quot;Business Nightly,&quot; on Tuesday, said PXP has already sent a letter of request to lift the suspension earlier imposed on the project due to the escalation of tensions in the West Philippine Sea.READ: <a href="http://news.abs-cbn.com/business/03/03/15/philippines-suspends-gas-oil-exploration-reed-bank">Philippines suspends gas, oil exploration in Reed Bank</a>Carlos expects to meet with Energy Secretary Alfonso Cusi in August.He believes that the gas reserves in Reed Bank are bigger than Malampaya&#x27;s.Once the suspension is lifted, it will take 20 months to get the firm to buy the equipment to restart the twin drilling again.Carlos said entering into joint development agreements with foreign partners are not workable because they are disallowed by Philippine laws, and service contracts are the way forward.He said this is the reason why PXP is planning to go into a farm-in contract or contracts with foreign partners.The Department of Energy in 2015 &quot;granted a force majeure on service contract 72&quot; because the area falls within the maritime dispute between Manila and Beijing.The area was the subject of an international arbitration process.&quot;Under the terms of the force majeure,&quot; the statement read, &quot;all exploration work at SC 72 is immediately suspended (effective from 15 December 2014) until the Philippine Department of Energy notifies the Company that it may commence drilling.&quot;&quot;Further updates on SC 72 will be made as and when appropriate,&quot; it said.In March 2011, the Philippine military said two Chinese gunboats &quot;harassed&quot; a Philippine-commissioned oil exploration ship in Reed Bank about 85 nautical miles from the nearest coast of Palawan that energy officials believe holds 3.4 trillion cubic feet of gas and 440 million barrels of oil.The incident prompted the military to dispatch a bomber and light aircraft to the area.Then President Benigno Aquino said Reed Bank is not part of the disputed Spratly islands in the South China Sea being claimed entirely by China, Taiwan and Vietnam and in part by Brunei, Malaysia and the Philippines.But China, which claims almost the entire South China Sea, insists Reed Bank is within its sovereign territory. - with a report from Kyodo NewsREAD: <a href="http://news.abs-cbn.com/nation/05/10/11/aquino-insists-reed-bank-belongs-philippines">Aquino insists: Reed Bank belongs to Philippines</a>

Manny Pangilinan-led Philex Petroleum (PXP) is looking at farm-in contracts with foreign partners once its Reed Bank (Recto Bank) natural gas project is restarted by the Department of Energy (DOE).

Philex Petroleum wants to explore Reed Bank anew

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Philex Petroleum wants to explore Reed Bank anew

Cathy Yang,

ABS-CBN News

Published Jul 19, 2016 11:40 PM PHT

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Updated Jul 20, 2016 08:43 PM PHT

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