PXP applies to develop Malampaya gas hub

PXP Energy Corp., Mandaluyong City, Philippines, wants to develop an integrated natural gas hub centered on deepwater Malampaya gas field off Palawan Island in the West Philippine Sea.

Development would occur after expiration of Malampaya’s Service Contract (SC) 38 in 2024 (OGJ Online, Nov. 12, 2019).

PXP notified the Philippine Stock Exchange it had submitted an unsolicited proposal to the Philippine Department of Energy for the hub project, which would facilitate development of nonproducing Sampaguita gas field and nearby prospects in SC 72. Forum (GSEC 101) Ltd., in which PXP holds a majority interest, operates SC 72.

The contract is subject to force majeure because of a maritime territorial dispute between the Philippines and China. Forum, which acquired the SC 72 from Sterling Energy Ltd. in 2005 and has conducted geophysical work since then, plans to drill two Sampaguita wells when force majeure ends.

Malampaya, gas from which is critical to the generation of electricity in the Philippines, is operated by a subsidiary of Royal Dutch Shell PLC, which holds a 55% interest in SC 38 in partnership with a unit of Chevron Corp., with 45%.

In its filing with the stock exchange, PXP also said it “has expressed an interest” to acquire the Chevron stake.