PXP Energy Corporation (PXP) intends to join a government auction for energy reserves in the western and southern waters of the country that are unclaimed by China.
Reuters reported that PXP Energy has the jurisdiction to root around the Reed Bank in the South China Sea, which was thought to be a resource-rich area.
PXP Energy Chairman Manuel Pangilinan said the company’s alternative strategy was to participate in a Department of Energy-led auction, covering eight projects, announced in February.
Through the Reed Bank, the company intends to make up for the natural gas deposit that is expected to run out in the nearby Malampaya Gas Field by 2027.
Territorial disputes and legal disagreements hampered the exploration efforts of PXP Energy for years.
However, following Chinese patrol vessels’ near-collision with a contracted survey ship in 2011, two previous presidents imposed an embargo on further exploration of the area, which lasted from 2014 to 2020.
To collaborate on exploring the area, PXP Energy held discussions with China National Offshore Oil Corporation; however, the talks were hampered by legal disputes between the Chinese and Philippine governments.
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