Philippines: Drilling operations in the WPS urged ahead of Malampaya depletion

Philippines: Drilling operations in the WPS urged ahead of Malampaya
depletion

BUSINESS TYCOON MANNY V. PANGILINAN IS LOOKING INTO REOPENING ITS OIL
EXPLORATIONS DESPITE THE LONG-TIME TERRITORIAL CONFLICT IN THE WEST
PHILIPPINE SEA VERSUS CHINA.

Pangilinan's energy venture, PXP Energy Corp., has ongoing drilling projects
in the Reed Bank that were stalled by the government after the Philippines
filed an international arbitration case against China over the disputed
area.

"I think there are indications that there could be gas in the area,"
Pangilinan told reporters at the ASEAN 50th anniversary celebration in
Makati City last Wednesday.

The energy firm holds the drilling rights in the Palawan island since the
Aquino administration and was even in talks with Chinese firm China National
Offshore Oil Corp. for a joint exploration and development of the Reed Bank.

Pangilinan expressed the urgency to resume PXP Energy's explorations,
especially on account of the delicate state of the Malampaya plant, which is
believed to deplete in 2024.

"When it will run out completely, we have no idea. We're hearing 2029. But
it will start running out pretty soon," he said.

Pangilinan also stressed that the exploration contracts in the Reed Bank
would be able to meet the country's natural gas requirements if the
government is ready to begin deciding on lifting the ban as soon as
possible.

"If (gas quantity) is close to, equal or better than (Malampaya), obviously,
it's something. From a purely commercial perspective and setting aside
political aspects, then I think we should try to determine whether there's
gas or not," Pangilinan said.

However, Pangilinan is far from being discouraged by such unfortunate events
since there have been more open and "friendlier" relations between the
Philippines and China as of recent.

"I can just describe the general context under which we can move forward and
the environment looks pretty positive," he said.

Reed Bank is under Service Contract 72's Sampaguita natural gas prospect
toward West Palawan where economic developments in the area are currently
suspended due to territorial disputes with China.

Pangilinan's PXP Energy holds a controlling interest at 70 percent in the
area through London-listed Forum Energy PLC.

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Link to Original Article:
http://powerphilippines.com/2017/08/07/drilling-wps-urged-malampaya-plant-de
pletion/

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com