Officials of listed PXP Energy Corp. and state-run Philippine National Oil Co., the government’s oil and gas arm, met recently to discuss opportunities on oil and gas exploration projects.
PNOC said PXP Energy officials led by chairman Manuel Pangilinan paid a courtesy call on PNOC president Reuben Lista and other PNOC executives “to discuss matters of mutual business interest related to oil and gas exploration.”
Officials declined to comment further. PXP Energy has a pending unsolicited proposal to the Department of Energy to take over the Malampaya gas project after the expiration of service contract 38.
PNOC is a member of the SC 38 consortium through a 10-percent stake held by unit PNOC Exploration Corp.
PXP Energy earlier submitted an unsolicited proposal to the DOE for the strategic development and utilization of an integrated gas hub in Malampaya upon the expiry of SC 38 in 2024.
“Under the unsolicited proposal, the Malampaya infrastructure and distribution network, which is strategically positioned in the West Philippine Sea, is envisioned to support the continued development of the Malampaya resources, as well as the economic development of Sampaguita Field and other nearby prospects under SC 72, which is operated by PXP through Forum (GSEC 101) Ltd.,” PXP Energy said.
PXP Energy operates SC 72, which is estimated to contain huge potential gas reserves. The area, however, is covered by a force majeure due to a territorial dispute with China.
PXP Energy’s proposal aims to ensure energy security of the Philippines through the development of indigenous natural gas resources over the next 25 years and beyond, while bringing in significant revenues to the Philippine government.
The use of the Malampaya facilities as the integrated gas hub will also support the development of a robust indigenous gas industry.
“These project benefits are consistent with DOE’s commitment to pursue national development through the two-fold agenda of attaining energy independence and implementing power market reforms as contained in the Philippine Energy Plan, and is aligned with the DOE’s clean fuel strategy, including the reduction of dependence on coal,” said PXP Energy earlier.
PXP Energy said the unsolicited proposal was expected to yield substantial foreign exchange savings resulting from the reduced importation of coal and other fuel supply.
PXP Energy has reduced its consolidated net loss to P21.8 million in the first nine months of the year from P49.1 million year-on-year.