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MONTE Oro Resources & Energy Inc. is set to fast track its buy
in into Forum Energy Plc’s petroleum contract covering the
high-frontier Sampaguita oil and gas discovery in offshore Palawan.
In a statement, Forum Energy said that Monte Oro
has consented to changes in the agreement both parties entered into
last September for the latter’s acquisition of a 30 percent stake
in the former’s wholly owned geophysical survey and exploration
contract (GSEC) 101.
Monte Oro is a local company engaged in mining,
petroleum and infrastructure investments. It is the mother company
of Monte Oro Grid Resources Corp., which in turn owns a 30 percent
stake in the National Grid Corp. of the Philippines (NGCP).
NGCP is the concession company of the consortium
that won the bidding for the National Transmission Corp. last
December. The other members of the group include Calaca High Power
Corp. and State Grid Hong Kong Ltd., a wholly owned subsidiary of
State Grid Corp. of China .
Under the terms of its amended deal with Forum
Energy, Monte Oro will immediately acquire the 30 percent
participating interest in GSEC 101 upon payment of $1.7 million
“in respect of past costs and expenses incurred by Forum.”
The original deal called for a $1.5 million
payment, which would have been paid within six months following the
conversion of the GSEC 101 into a full service contract. The
conversion of the contract has been pending with the Department of
Energy for over a year.
Alan Henderson, Forum Energy acting chief
executive officer, said that Monte Oro’s entry will help in
“enhancing the attractiveness of any future development on
GSEC101” as it will entitle the joint venture to the Filipino
Participation Incentive Allowance, which equates to 7.5 percent of
gross proceeds from any future production.
Forum Energy said that “Monte Oro will
continue to assist in obtaining all regulatory approvals for the
conversion of GSEC 101 into a service contract.”
Projections show the area under GSEC 101 can
rival the output of the Malampaya, the country’s largest natural
gas field, which feeds three power plants.
The area covered by GSEC 101 was earlier
embroiled in a contract dispute after the Chinese claimed it as part
of a tripartite deal with the Philippines and Vietnam for joint
exploration in the Spratly’s Islands.
Forum Energy said that it believes the agreement
“may have delayed the conversion of GSEC 101” to a service
contract, an option that was pre-negotiated with the government,
allowing it to commence with drilling activities in the block.
But company officials earlier expressed optimism
that Forum Energy may finally have its GSEC 101 contract converted
once the agreement lapses.
The tripartite agreement, or the Joint Marine
Seismic Undertaking, expired Monday.
-- Euan Paulo C. Añonuevo
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