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Philippines: MVP sees reopening of oil, gas exploration
BUSINESS tycoon Manuel Pangilinan is optimistic the agreements inked by the Philippines and China will result in the resumption of the exploration in the West Philippine Sea.
The accord is a “small but significant step both for China and the Philippines,” Pangilinan said during the Meralco Technology & Innovation Summit 2018 held at the listed power firm’s head office in Pasig City.
“I do hope this could lead to some positive steps that we can take in respect of the work program that the group has presented to the previous government in respect of the exploration and development work,” Pangilinan said.
The impact of these deals, he added, is “quite significant.”
Pangilinan made the pronouncement after the Philippine and Chinese governments on Tuesday signed 29 agreements, including oil and gas development, at the beginning of Chinese President Xi Jinping’s two-day state visit to the country.
Back in 2012, the government, under former President Benigno Aquino, issued a moratorium on all exploration and drilling works in the disputed sea territory because of a territorial dispute with China.
The move stymied a possible joint venture between Chinese state-owned China National Offshore Oil Corp. and Pangilinan’s PXP Energy Corp.
During the Chinese leader’s first state visit to Manila, Xi and President Rodrigo Duterte witnessed the signing of the accords between both countries.
Foreign Affairs Secretary Teodoro Locsin Jr. and Chinese Minister of Foreign Affairs Wang Yi signed the memorandum of understanding (MoU) on cooperation on oil and gas development between the Foreign Service Institute of the Philippines and the China Foreign Affairs University.
Beijing has expressed its willingness to enter into a 60-40 joint exploration arrangement with Manila. Under the proposed arrangement, the Philippines will receive 60 percent of the oil and natural gas deposits while Beijing will get the remaining 40 percent.
Other deals signed by the two nations during Xi’s visit include trade and investment, banking and finance, infrastructure, agriculture, education, culture, and people-to-people exchanges.
Pangilinan owns listed Manila Electric Co. (Meralco), the country’s largest power distributor, under the umbrella of Metro Pacific Investments Corp. (MPIC).
The tycoon said in August this year that the MPIC and Meralco were considering building a liquefied natural gas (LNG) terminal in the Philippines.
“We’re studying that,” Pangilinan told reporters on Monday at the sidelines of a Meralco press briefing.
He said several factors were being studied in regard to the plan, including its cost and impact on electricity rates and the price and source of gas. The project, he said, can both be a floating storage regasification unit and an offshore LNG facility.
Pangilinan also indirectly owns an exploration asset located in offshore Peru.
In October, PXP Energy informed the local bourse it would acquire up to 49-percent stake in the planned LNG terminal and gas fired power plant of Phoenix Petroleum Philippines, Inc. and China National Offshore Oil Corp. (CNOOC).
This, as PXP Energy signed the subscription agreement with Dennison Holdings Corp., with the latter buying 340 million common shares of PXP Energy at P11.85 each or for a total of P4.03 billion.
In June this year, Phoenix Petroleum teamed up with CNOOC to explore the construction, development, and operation of an LNG facility in the country.
CNOOC, primarily engaged in the business of exploration, development, production and sale of crude oil and natural gas, is one of the entities vying to construct an integrated LNG plant in the country.
Source: https://www.manilatimes.net/mvp-sees-reopening-of-oil-gas-exploration/471390/