PXP Energy eyes Reed Bank oil exploration activities

PXP Energy on Tuesday said it may be able to continue exploration activities in the West Philippine Sea, as the Association of Southeast Asian Nations (ASEAN) and China negotiate a proposed code of conduct covering the disputed waters.

"I remain optimistic that given the more hospitable attitude of this government towards China, hopefully something will work out," PXP Energy chairman Manuel V. Pangilinan told reporters on the sidelines of the ASEAN Business and Investment Summit.

He was asked for his comment on the latest development that ASEAN and Chinese leaders have agreed to start talks on the Code of Conduct based on a framework approved by foreign ministers in August.

"For a number of reasons, way back in 2014, the then-government suspended all activities in the so-called disputed territory of the South China Sea. So since that time, there's been no work done by ourselves and I guess in the respective concession areas. So we'd like to proceed," Pangilinan said.

In 2013, PXP Energy—through London-based subsidiary Forum Energy Plc—was in talks with China National Offshore Oil Corporation (CNOOC) on developing a part of the Reed Bank, a vast offshore area claimed by both China and the Philippines.

Exploration activities in the area, however, were halted amid geopolitical tensions between the two countries.

In July, Pangilinan said PXP ENergy was waiting for a cue from the Duterte administration regarding oil exploration activities in the area.

Pangilinan said the company will wait for a joint statement from ASEAN and China, amid recent developments that rekindled the hope to proceed with exploration works.

"Just purely from our perspective, okay, (to finalize a survey work, to do exploratory, and to determine once and for all whether there's gas in the concession. And if there's gas, is it of commercial quantity especially given today's fuel prices," he said.

Data from the Department of Energy showed diesel prices in the country now range from P31.20 to P36.30 per liter and gasoline from P42.55 to P52.41.

"Kung wala namang gas d'on anong pag-aawayan natin, isda? Hindi naman siguro ganon. 'Yun lang, we want to establish and if for some reason it doesn't proceed, there's nothing we, as business people, can do," Pangilinan said.

"I think we're quite optimistic that something could happen, but that's entirely beyond our control," he added. — VDS, GMA News