Phinma Petroleum takes loss on interest in SC 51 in East Visayas

By Lenie Lectura – May 17, 2018
from Business Mirror

PHINMA Petroleum and Geothermal Inc. (PPG) will take a loss on its interest in an exploration service contract after the company decided to withdraw from it.

The company said on Thursday that it has notified the Department of Energy (DOE) of its withdrawal from Service Contract (SC) 51 in Eastern Visayas. It gave no other details.

As a result, PPG said it would recognize a loss of P32.7 million for the write-off of its share in the expenditures incurred to date under SC 51.

“This is equivalent to 22 percent of the company’s total assets as of March 31, 2018,” the company told the stock exchange.

PPG has other interests in oil-gas service contracts, namely: SC 55 in offshore West Palawan, SC 6 Block A and B in Northwest Palawan, SC 69 in Camotes Sea and SC 50 in North Palawan.

These contracts, the company said, are in various stages of studies and drilling.

The company recently said geophysical studies in SC 55 would be conducted to review the prospects in the area. The company has a 37.5-percent participating interest in SC 55.

It also announced plans to pursue a construction of an liquefied natural gas (LNG) facility in Argao, Cebu.

The planned LNG facility will include a 120-megawatt (MW) power plant, floating storage and regasification unit.

The company said it signed in November 2017 a joint-development agreement with three foreign companies for the deployment of the LNG facility, which is targeted to be finished by 2023.