A SUBSIDIARY of Philex Petroleum Corp. (Philex) has withdrawn from an oil exploration project in Peru.
In a disclosure to the Philippine Stock Exchange (PSE) on Friday, Philex said Pitkin Petroleum Plc. (Pitkin) decided to withdraw from Peru Bloc 28 located in onshore Peru.
Pitkin, a UK-registered upstream oil and gas company, is a 53 percent-owned subsidiary of Philex.
“Pitkin has elected not to enter exploration sub-phase 2 in Peru Bloc XXVIII located in onshore Peru,” Philex said in its disclosure.
As a result, Pitkin surrendered the said block to the Peruvian government.
Philex did not say why Pitkin left the project.
Pitkin Petroleum, with operations in the Philippines and Peru, has a 25 percent interest in Block Z-38 in the Tumbes basin offshore northwest Peru.
A number of seismic surveys have been carried out over the block, including a 1,500-square- kilometer 3D seismic survey completed in 2010. Block Z-38 has a span of nearly 5,000 square kilometers.
The block license is currently in the third exploration period and preparations are currently underway for drilling subject to rig availability.
Karoon Gas Australia is the operator of the exploration block with a 75 percent interest, and Pitkin Petroleum Peru Z38 SRL holds the remaining stake.
In June 2013, Peru approved the environmental and social impact study for a $729 million drilling program, including 10 exploration wells and 10 confirmation wells.
In the Philippines, Pitkin Petroleum has a 35 percent interest in Service Contract 53 in Mindoro and a 70 percent interest in SC 74 northwest Palawan.