Philippines Suspends All Oil, Gas Drilling Operations in Disputed South China Sea

Philippines has suspended all oil and gas drilling activities in the South China Sea, according to UK listed Forum Energy.

Forum Energy, the UK incorporated oil and gas exploration and production company with a focus on Philippines, on Tuesday said, “The Philippine Department of Energy (DOE) has granted a force majeure on Service Contact 72 (SC 72) because this contract area falls within the territorial disputed area of the West Philippine Sea which is the subject of an United Nations arbitration process between the Republic of the Philippines and People's Republic of China.”

Under the terms of the force majeure, all exploration work at SC 72 is immediately suspended (effective from 15 December 2014) until the DOE notifies the company that it may commence drilling.  

“As a result, the second sub-phase of SC 72 has been put on hold until further notice,” the company added.

The terms of the second sub-phase and all subsequent sub-phases will be extended by the term of the force majeure.

“Further updates on SC 72 will be made as and when appropriate,” Forum Energy said.

The Recto Bank concession or SC72 is located in the West Philippine Sea west of Palawan Island and southwest of the Shell-operated Malampaya Gas Field. According to company website in mid-January to mid-March 2011, Forum acquired more than 2,200km of 2D and 565 sq km of 3D seismic data over the block.  2D and 3D seismic interpretation was carried out by Weatherford Petroleum Consultants.  The study shows the Sampaguita Field to contain 2.6 trillion cubic feet (TCF) of contingent in-place gas resources and 5.5 TCF of prospective in-place gas resources.  There are also estimates made for possible condensates associated with the gas.