Phinma energy firm says DOE has cleared its exit from SC 69

By Lenie Lectura -September 5, 2019
from Business Mirror

PHINMA Petroleum and Geothermal Inc. (PPG) said on Wednesday the Department of Energy (DOE) has approved the company’s decision to abandon Service Contract (SC) 69 located in Central Visayas.

“The company received today a notice from the Department of Energy approving the relinquishment of SC 69 pending settlement of all remaining financial obligations, which the company has previously earmarked in its 2019 budget,” said PPG.  SC 69 covers an offshore area in the Visayan and Camotes Sea.

The company requested permission to relinquish SC 69 amid strong opposition to the conduct of petroleum exploration activities in the area by various local government units and environmental groups.

“In light of…opposition to the project from various stakeholders and the recent issuances of local ordinances and resolutions for the protection, conservation and declaration of the Visayan Sea as a national protected area and marine reserve,” the company said it decided to relinquish the block.

Earlier, PPG also pulled out from SC 51 (East Visayas). It had said that it would also no longer pursue its entitlement to Otto Energy’s participating interest in SC 51 under the deed of undertaking dated March 2, 2017.

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, 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 will be conducted to review the prospects in the area. The company has a 37.5-percent participating interest in SC 55.