Philex Petroleum Corp. reported huge losses in the first nine months of the year.
Manuel Pangilinan, Philex Petroleum chairman, confirmed that the company’s losses hit P376.9 million in the first three quarters. This is almost twice the firm’s net loss of P190.2 million incurred last year.
Philex Petroleum is the upstream oil and gas subsidiary of Philex Mining Corp.
“The increase in net loss was mainly due to an impairment loss related to Service Contract [SC] 6A recorded by Pitkin Petroleum Plc,” Philex Petroleum said in a disclosure to the Philippine Stock Exchange.
The losses shouldered by Pitkin, which is 53 percent owned by Philex Petroleum, arose from its decision not to pursue the development of SC 6A in offshore northwest Palawan.
In case Pitkin pursued development of the contract, it would have secured a 70-percent stake in the project.
Because of its move to exit SC 6A, Pitkin recorded an impairment loss of P338 million.
Pangilinan said Philex Petroleum plans to reassign its interest in the oil and gas block to its partners by December.
Pangilinan also confirmed that the company will focus with the geotechnical survey on the Service Contract (SC) 72 Reed Bank next year.
Pangilinan said the firm will conduct a survey for a geotechnical mapping next year.
“We are assuming that we will proceed with our program. The plan is to send a survey vessel there to do the geotechnical mapping that would be sustained in 2016 to ensure that the oil is stable,” Pangilinan told a media briefing.
Philex Petroleum controls Forum Energy Plc., the company behind the SC 72 project in offshore Palawan.
Pangilinan earlier said that drilling in the offshore Palawan gas find could be done after a seismic survey in April or May next year for the SC 72 Reed Bank, which contains the Sampaguita gas discovery. RITCHIE A. HORARIO