Oil, gas exploration on hold

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PXP Energy Corp. said all its exploration activities in the West Philippine Sea have been put on hold anew after the Department of Energy (DOE) ordered the company to obtain from the Security, Justice and Peace Coordinating Cluster a clearance to operate in the contested waters.

PXP Energy said DOE in a letter dated April 6 informed the company of the additional requirement before it can resume work obligations in service contracts (SC) 72 and 75 following the lifting of force majeure on October 2020.

PXP holds a 50-percent interest in SC 75 located in Northwest Palawan while Forum Energy Ltd. where PXP holds a direct and indirect interest of 79.13 percent, has a 70-percent participating interest in SC 72 also located in Northwest Palawan.

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PXP Energy said it informed DOE in a letter dated April 8 it was ready to resume activities but that it was willingness to declare force majeure to avoid significant losses.

“To date, PXP and Forum have not received advice from the DOE that they can resume their exploration activities. Thus, they have been constrained to stand by their force majeure declarations and to terminate with immediate effect all the supply and services agreements they have put in place to carry out the work obligations imposed by the DOE, to mitigate losses arising from what now appears could be an indefinite suspension of exploration activities,” the company explained in a filing to the Philippine Stock Exchange yesterday. – Jed Macapagal

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