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PXP hits roof for 2nd straight day but MVP-led firm says no deal yet with China’s CNOOC on WPS oil and gas hunt

Shares of PXP Corp. hit the ceiling for the second consecutive trading day even as its management stressed that it has yet to strike a deal with the Chinese government to hut for oil and gas in the disputed waters of the West Philippine Sea.

PXP was the top gainer in the market on Monday, October 19, as it soared 50 percent to P11.58 on total trade of P92.761 million. It has more than doubled from its closing price of P5.15 on Thursday.

Hours after the market closed, the Department of Energy announced that President Rodrigo Duterte has approved its recommendation to lift the suspension of petroleum activities and the resumption of petroleum exploration in the WPS. PXP revealed it has received the “resume to work” order for Service Contracts 72 and 75 as of Monday.

PXP has a 56 percent interest in SC 72 and a 50 percent stake in SC 75 which some experts believe have a bigger gas potential than Malampaya.

The oil and gas exploration firm led by bilyonaryo Manny V. Pangilinan said that aside from Duterte’s green light, the frenzied buying of its shares could also have been influenced by the Department of Energy’s announcement on to “the ongoing negotiations between the Philippines and China, and Forum Ltd. and the China National Offshore Corp. (“CNOOC”).

PXP said there was speculation on the ongoing negotiations between its consortium, Forum, and China National Offshore Oil Corp or CNOOC group relating to the implementation of the memorandum of understanding on cooperation on oil and gas development between the Philippines China signed in November 2018.

“But the parties are yet to agree on any disclosable definitive agreement. Hence, to date there is no disclosable information in respect of such ongoing negotiations, including the existence of such ongoing negotiations itself,” said PXP.

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