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A CONSORTIUM led by publicly
listed Trans-Asia Oil and Energy Development Corp. (TA Oil) said it
has inked a farm-in agreement with a Swiss-based investment company
for exploration activities off Palawan.
In a
disclosure to the Philippine Stock Exchange, TA Oil said the deal
with Vitol GPC Investments S.A. for exploration activities in a
petroleum service contract (SC) located in Cadlao off Palawan will
give the Swiss company the right to acquire up to 70 percent of the
block after a one-year grace period.
Raymundo A.
Reyes Jr., TA Oil vice president for exploration, said Vitol will
foot the bill for the geological, geophysical and engineering
studies on SC 6 Block A over a one-year period, and may choose to
purchase up to 70 percent participating interest or withdraw from
the project after the grace period has elapsed.
The company
said the farm in agreement would still have to be approved by the
Department of Energy.
TA Oil, which
owns a 7.78-percent participating interest in the block, added that
should Vitol decide to proceed with the acquisition, it will
carry the original SC 6 Block A partners in the cost of drilling one
well.
TA Oil is a
unit of the Phinma group, which has investments in power generation,
renewable energy, real estate and mineral production.
 --Euan
Paulo Añonuevo
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