The Department of Energy (DOE) has approved Palawan55 Exploration & Production Corporation’s request to place its Service Contract (SC) 55 exploration block under Force Majeure for one year.
In separate disclosures to the Philippine Stock Exchange by Ayala-led ACE Enexor, Inc. and Pryce Corporation, both firms said that the DOE approved Palawan55’s request on Wednesday. The department likewise said in its letter to both companies that the timeline of SC55’s appraisal period will be adjusted accordingly.
ACE Enexor owns 75% of Palawan55, while Pryce owns the remaining 25%.
The DOE confirmed the entry of SC55 into the original appraisal period last April 26, which was premised on the drilling of at least one well within its first two years. Palawan55 is currently in the detailed planning stage for the drilling of the obligatory well.
“This approval will extend the Consortium’s work program schedule by up to another year and enable the Consortium to better plan and steer through any unforeseen and unpredictable consequences of a prolonged COVID-19 pandemic,” Pryce said in its disclosure.
Palawan55 requested the DOE to declare the Force Majeure in view of the risks to the validity and optimization of a definitive drilling plan amid the pandemic.