MANILA – A unit of Philex Petroleum Corp has dropped out of an oil and gas project in offshore Northwest Palawan.
Philex Petroleum said subsidiary Pitkin Petroleum Plc will not pursue the acquisition of a 70 percent stake in Service Contract 6A.
“Pitkin will be reassigning its participating interest back to the farm-out partners after completion of Phase 1 work program on December 31, 2014,” Philex Petroleum said.
The decision stems from an option agreement signed by Pitkin with Philex Petroleum, The Philodrill Corp, Trans-Asia Oil & Energy Development Corp, PetroEnergy Resources Corp, Forum Energy Philippines Corp, Anglo Philippine Holdings Corp, and Alcorn Gold Resources Corp in 2011.
The deal allows Pitkin to take control of the cumulative 70 percent stake held by the said companies after shouldering Phase 1 costs for the acquisition of seismic data amounting to $5 million. Phase 2 would have involved the drilling of up to 2 exploration wells in the contract area also at Pitkin’s expense.
SC 6A covers a 1,081 square kilometer area in mostly shallow waters in offshore Northwest Palawan. The Octon prospect in the contract area has been projected to hold oil resources of commercial volume.
Philex Petroleum, which owns 53 percent of Pitkin, is the upstream oil and gas arm of Philex Mining Co.
Manuel V. Pangilinan chairs the Philex group and TV5, of which InterAksyon.com is the online news portal.
Read more: http://www.interaksyon.com/business/94709/philex-petroleum-unit-opts-out-of-northwest-palawan-oil-gas-project