Page 34 - Oil&Gas-AustralAsia-2015-Issue-1
P. 34
P HILIPPINES
Territorial dispute causes force
majure
By Marie RYAN
UK based Philippine focused explorer decision was made. SC72 offshore Philippines of South China Sea.
Forum Energy has been instructed by Chairman of Philex Petroleum who Image courtesy of Mudrock Media.
the Philippine Department of Energy holds a 70 per cent participating inter-
(DOE) to halt all its offshore operations est in SC72, Manny Pangilinan, said Chinese Foreign Ministry spokesman
due to an ongoing territorial dispute the project had failed to attract capital Hong Lei defended the nation’s activi-
with China. investment due to the dispute making ties in the region in March as “reasona-
The company’s offshore Service Con- investors wary of offending China. ble, legitimate and legal” and said China
tract 72 (SC72) also known as Recto The block lies within the territorial had exercised “restraint and responsi-
Bank has been granted a force majure disputed area of the West Philippine Sea bility.”
by the government. In a statement Fo- which is currently the subject of a Unit- The Philippine government has filed
rum Energy said under the terms of the ed Nations arbitration case between diplomatic protests over Chinese land
force majeure, all exploration work at Manilla and Beijing. reclamation at several reefs in the
SC72 has been immediately suspended In the past year Philippine President region which resulted in the creation of
until the DOE notifies the company that Benigno Aquino III has been alarmed new islands.
it may commence drilling. “As a result, at the sighting of two Chinese seis- Claims over vast areas of the South Chi-
the second sub-phase of SC 72 has been mic vessels in the SC72 area, which na Sea have been escalating in recent
put on hold until further notice,” Forum could mean China is planning to drill years with Vietnam, Malaysia, Taiwan
said in a statement. for oil in the Reed Bank Basin which and Brunei all claiming parts of the
The Recto Bank block located in the is estimated to hold over 100tcf and area. The Philippines officially chal-
South China Sea south west of Palawan 11bboe according to the US Energy lenged China’s claim to the region at
Island is estimated to hold around 2.6 Information Administration. In 2011 an international tribunal in The Hague
trillion cubic feet (tcf) of contingent Chinese ships attempted to chase off angering the Chinese government.
in-place gas resources and associated a Philippine exploration vessel in the SC72 is also located km southwest of
liquids. Since purchasing the block same area, leading to the deployment of the Shell-operated Malampaya Gas
in 2005, Forum Energy has acquired two air force planes. When the planes Field and services one of the fastest
over 2,200km of 2D and 565km2 of 3D arrived, the Chinese ships had left the growing regions for natural gas de-
seismic data and was in the process of disputed zone. mand. §
drilling two appraisal wells when the
A A32 OIL & GAS ustral SIA MARCH/APRIL 2015 www.oilandgasaustralasia.com
Territorial dispute causes force
majure
By Marie RYAN
UK based Philippine focused explorer decision was made. SC72 offshore Philippines of South China Sea.
Forum Energy has been instructed by Chairman of Philex Petroleum who Image courtesy of Mudrock Media.
the Philippine Department of Energy holds a 70 per cent participating inter-
(DOE) to halt all its offshore operations est in SC72, Manny Pangilinan, said Chinese Foreign Ministry spokesman
due to an ongoing territorial dispute the project had failed to attract capital Hong Lei defended the nation’s activi-
with China. investment due to the dispute making ties in the region in March as “reasona-
The company’s offshore Service Con- investors wary of offending China. ble, legitimate and legal” and said China
tract 72 (SC72) also known as Recto The block lies within the territorial had exercised “restraint and responsi-
Bank has been granted a force majure disputed area of the West Philippine Sea bility.”
by the government. In a statement Fo- which is currently the subject of a Unit- The Philippine government has filed
rum Energy said under the terms of the ed Nations arbitration case between diplomatic protests over Chinese land
force majeure, all exploration work at Manilla and Beijing. reclamation at several reefs in the
SC72 has been immediately suspended In the past year Philippine President region which resulted in the creation of
until the DOE notifies the company that Benigno Aquino III has been alarmed new islands.
it may commence drilling. “As a result, at the sighting of two Chinese seis- Claims over vast areas of the South Chi-
the second sub-phase of SC 72 has been mic vessels in the SC72 area, which na Sea have been escalating in recent
put on hold until further notice,” Forum could mean China is planning to drill years with Vietnam, Malaysia, Taiwan
said in a statement. for oil in the Reed Bank Basin which and Brunei all claiming parts of the
The Recto Bank block located in the is estimated to hold over 100tcf and area. The Philippines officially chal-
South China Sea south west of Palawan 11bboe according to the US Energy lenged China’s claim to the region at
Island is estimated to hold around 2.6 Information Administration. In 2011 an international tribunal in The Hague
trillion cubic feet (tcf) of contingent Chinese ships attempted to chase off angering the Chinese government.
in-place gas resources and associated a Philippine exploration vessel in the SC72 is also located km southwest of
liquids. Since purchasing the block same area, leading to the deployment of the Shell-operated Malampaya Gas
in 2005, Forum Energy has acquired two air force planes. When the planes Field and services one of the fastest
over 2,200km of 2D and 565km2 of 3D arrived, the Chinese ships had left the growing regions for natural gas de-
seismic data and was in the process of disputed zone. mand. §
drilling two appraisal wells when the
A A32 OIL & GAS ustral SIA MARCH/APRIL 2015 www.oilandgasaustralasia.com
