The Department of Energy (DOE) has approved the application of Philodrill Corp. to surrender its rights over Service Contract 6A–Octon.
“After evaluation, we verified that the SC 6A joint venture partners have complied with Philodrill’s technical and financial obligations with the DOE. In view of said compliance, we hereby approve the request of Philodrill for relinquishment,” the DOE said.
Philodrill said that together with JV partners, they intend to nominate the surrendered area for a new SC application under the government’s conventional energy contracting program or PCECP.
A notice of surrender of the SC was submitted by the SC 6A JV partners in March 31, 2021 in line with the looming expiration of the contract’s 50-year term in February 2024.
To have sufficient time to drill and develop future discoveries in the area, Philodrill said the only viable way forward was to surrender the contract and apply for a new SC by nomination under the DOE’s PCECP.
Philodrill, as the operator, was earlier directed by the DOE to submit all necessary reports and settle all the SC’s outstanding obligations for the relinquishment to be processed.
In December last year, the company remitted to the DOE two separate checks amounting to P9.08 million and P1.01 million for the remaining commitments to complete the process of clearing financial obligations of SC 6A.
Aside from Philodrill, members of the SC 6A are Anglo Philippines Holdings Corp, Forum Energy Phil. Corp., PXP Energy, and Alcorn Petroleum & Minerals Corp.