The Department of Energy (DOE) has extended by 18 months the deadline imposed on Palawan55 Exploration and Production Corp. (Palawan55) to drill a well under service contract (SC) 55 in the West Philippine Sea (WPS).
Palawan 55, the subsidiary of Ayala-led ENEX Energy Corp., is the operator of SC 55.
ENEX, the oil and gas exploration unit of ACEN Corp., said on Tuesday that the DOE wrote a letter last December 1 granting Palawan 55’s request for an extension of the deadline.
“The DOE letter further states that “[g]iven that SC 55 is currently still on force majeure, Palawan55 shall have a total of 23 months [the five months remaining plus the 18-month extension] from the lifting of force majeure to drill the committed well,” ENEX said.
Pursuant to Section 26.01 of SC 55, the DOE had earlier found basis to place SC 55 under Force Majeure from December 6, 2022 until such time that a clearance to proceed with exploration activities in the West Philippine Sea has been issued by the National Government.
The SC 55 consortium consists of Palawan 55 (75 percent) and Pryce Gases Inc. (25 percent).
Under the proposed work program submitted to the DOE, at least one well is to be drilled within the first two years. SC 55 was estimated to have some 2.2 trillion cubic feet of gas.
Meanwhile, ACEN said its executive committee approved the proposed partnership with BrightNight APAC (Asia Pacific) B.V. for the establishment of a Philippines renewable energy (RE) platform company to develop, construct, and operate utility-scale RE projects in the Philippines.
“This partnership in the Philippines, once completed, will be the second gigawatt (GW)-scale RE platform investment partnership between ACEN and BrightNight in APAC,” said ACEN in a disclosure to the stock exchange.
BrightNight is the first global renewable integrated power company designed to provide utility and commercial and industrial customers with clean, dispatchable renewable power solutions. BrightNight works with customers across the United States and Asia Pacific to design, develop, and operate safe, reliable, large-scale renewable power projects optimized to better manage the intermittent nature of renewable energy.
BrightNight has developed an advanced renewable power portfolio of 2.7 GW across the Philippines, India, Australia and Bangladesh, 1GW of which being under development in the Philippines.