Philex Mining eyes participation in new oil, gas exploration contracts

MANILA, Philippines - Philex Mining Corp. has expressed interest to participate in the fourth Philippine Energy Contracting Round (PECR), which will offer for bidding 15 new oil and gas exploration areas.

The government is presently conducting and evaluating proposals from investors for the 15 oil and gas exploration areas offered under PECR 4.

“Well, we might (bid). It’s something the country needs to explore,” Philex Mining chairman Manuel V. Pangilinan told reporters.

Philex Mining controls Forum Energy Plc. which holds the service contract over Recto Bank (formerly Reed Bank).

Pangilinan said the company is still studying which among the prospective blocks Forum Energy will bid for.

Philex Mining, through its interests in FEC Resources Inc. and Philex Petroleum, controls 64.45 percent of the share capital of Forum Energy.

Forum Energy, on the other hand, owns a 70-percent equity interest in the Service Contract 72 license, which covers 8,800-square kilometers in offshore West Palawan in the West Philippine Sea.

The Department of Energy is interested in three onshore and 12 offshore blocks for exploration and development, with a total area of more than 10 million hectares located in Northwest Palawan, East Palawan and Sulu Sea basins.

Government is hoping to raise approximately $7.5 billion from the PECR 4, or around $500 million investment for each block offered.