Saturday 7 December
Dec 4, 2019 @ 18:34

PXP to appeal rejection of its Malampaya offer

 

Insisting on the significant revenues it will provide the government, PXP Energy Corp. will appeal the Department of Energy’s decision rejecting its unsolicited proposal to take over the Malampaya exploration service contract.

The DOE thumbed down PXP Energy’s proposal to develop and utilize an integrated gas hub in Malampaya upon the expiration of Service Contract No. 38 in 202 because the service area is still subject to a valid and existing contract.

“At this time, PXP is considering other options in pursuing the project including the submission of a letter to the DOE for a reconsideration of the unsolicited proposal given the expected benefits of the project to the country,” the company said in a regulatory filing.

PXP said the use of the Malampaya facilities as an integrated hub would ensure energy security in the country from indigenous natural gas resources for the next 25 years while bringing in significant revenues to the government.

The Malampaya infrastructure and distribution network, which is strategically positioned in the West Philippine Sea, is envisioned to support the continued development of the Malampaya resources, as well as the economic development of the Sampaguita Field and other nearby prospects under Service Contract No. 72., which is operated by PXP through Forum Ltd.

PXP said its proposed project is consistent with the DOE’s commitment to pursue national development through the two-fold agenda of attaining energy independence and implementing power market reforms as contained in the Philippine Energy Plan.

It is also seen to yield substantial foreign exchange savings resulting from the reduced importation of coal and other fuel supply, PXP said.

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