Palawan55 Exploration & Production Corp., a unit of Phinma Petroleum and Geothermal Inc., will increase its stake in service contract 55 in southwest Palawan to 75 percent after joint venture partner Century Red Pte. Ltd. of Australia withdrew and reassigned its interest.
Phinma Petroleum said in a disclosure Friday to the Philippine Stock Exchange on Friday Century Red assigned its 37.5-percent interest in Service Contract No. 55 to Palawan55, subject to approval of the Department of Energy.
SC 55 is a deep-water block in the southwest Palawan Basin, covering an area of 9,880 square kilometers. It is in the middle of a proven regional oil and gas fairway that extends from the productive Borneo offshore region in the southwest to the offshore Philippine production assets northwest of Palawan.
“Century Red is effectively withdrawing as co-contractor in SC 55, leaving Palawan55 and Pryce Gases Inc. as the remaining co-contractors,” Phinma Petroleum said.
Upon the approval of the Energy Department of the assignment, the participating interest of Palawan55 in SC 55 will increase to 75 percent from 37.5 percent. Palawan55 is the operator of SC 55.