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Friday, March 29, 2024

Oil block southwest off Palawan placed under force majeure

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The Department of Energy approved the request of Palawan55 Exploration & Production Corp., a subsidiary of ACE Enexor Inc., for one-year force majeure on Service Contract 55 located in southwest Palawan.

"Please be advised that Palawan55, the company’s subsidiary and the operator of SC 55, received a letter from the DOE dated May 11, 2021, approving its request to place SC 55 under force majeure for a period of one year," ACE Enexor said in a disclosure to the stock exchange.

SC 55 is a deep-water block covering an area of 9,880 square kilometers.

"The letter also states that the timeline of the SC 55 appraisal period will be adjusted accordingly, and the end of the period will be adjusted by the same amount of time that SC 55 was on force majeure," the company said.

The DOE confirmed the entry of SC 55 into the appraisal period effective April 26, 2020, premised on the drilling of at least one well within the first two years of the appraisal period.

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ACE Enexor said Palawan55 was in the detailed planning stage for the drilling of the obligatory well. The SC 55 Consortium is composed of Palawan 55 with a 75-percent stake and Pryce Gases Inc. with 25 percent.

ACE Enexor president Raymundo Reyes earlier said the company filed for a one-year force majeure request with the DOE amid the delays expected from the COVID-19 pandemic.

“We are aware of the headwinds the pandemic might post to drilling operations in the near future such as mobility restrictions and potential supply chain restrictions, our consortium has requested the DOE for declaration of a one-year force majeure to cover any unforeseen delays in the timetable,” Reyes saidsaid.

He said that while waiting for the DOE approval, ACE Enexor started preparations for drilling proposal for the exploratory well.  “This is a comprehensive technical document that details the plan for constructing the borehole and evaluating the rock formations and fluids that will be encountered in the subsurface,” he said.

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