Brixton Energy and Mining Corp., a wholly owned subsidiary of Philex Petroleum Corp., has secured regulatory approval to transfer its rights to a coal operating contract (COC) over potential reserves in Zamboanga Sibugay to Grace Coal Mining and Development Inc.
This developed after the Department of Energy (DOE) approved the Deed of Assignment between Brixton Energy and Grace Coal Mining over Coal Operating Contract No. 130.
In a disclosure to the Philippine Stock Exchange (PSE) on Wednesday, Manuel Pangilinan-led Philex Petroleum said the DOE found Grace Coal capable and competent to undertake the coal exploration and development of COC 130.
“After a thorough technical, financial and legal evaluation, we found Grace Coal to be technically, financially and legally capable and competent to undertake the coal exploration and development and take over as operator of COC 130. Accordingly, the transfer/assignment in favor of Grace Coal is hereby approved,” Energy Secretary Carlos Jericho L. Petilla said in a letter attached to the filing.
Under the approved Deed of Assignment, Grace Coal shall assume and perform the work obligations and commitments of Brixton Energy on COC 130.
“As the new coal operator, Grace Coal shall assume and perform the work obligations and commitments, including the remaining work and financial commitments in the approved five-year work program of Brixton Energy, as provided in COC No. 130, and abide with all applicable laws, rules and regulations,” Petilla said.
The Sibugay coal project, covered by COC No. 130, was awarded by the DOE in 2008 to Brixton Energy.
The contract area for development and production covers two coal blocks in Barangays Butong and Sta. Cruz in Diplahan and Barangay Del Monte in Buug, both in the province of Zamboanga Sibugay.