Philippines reconsiders energy contract

MANILA, Philippines, Oct. 12 (UPI) -- The Filipino government is re-evaluating Britain's Forum Energy Plc.'s offshore Palawan exploration block concession.

The Manila Times reported Monday that Department of Energy Secretary Angelo Reyes said that the review was delayed because of a tripartite deal among the Philippines, China and Vietnam. According to Reyes, the government has begun holding Cabinet meetings to consider Forum Energy Plc.'s request to convert its Geophysical Survey Exploration Contract (GSEC 101) into a service contract, telling journalists, "We are hoping to decide on this matter very soon."

Conversion of the GSEC 101 agreement into a service contract would allow Forum Energy Plc. to proceed with its development program for the concession, such as drilling and production activities.

The GSEC 101 exploration block contains the Sampaguita oil and gas discovery in the Reed Bank basin in offshore Palawan, which is believed to contain reserves on a par with the Malampaya field, the Philippines' largest natural gas field to date, with estimated reserves of at 3.7 trillion cubic feet of natural gas.