MANILA--Philex Petroleum Corp. (PXP.PH) in still in talks with
China National Offshore Oil Corp. (CEO ) for a possible joint
development of natural gas prospects in a contested area in the
South China Sea, the chairman of the Philippine oil explorer said
Friday.
Philex Petroleum is the controlling shareholder of the operator
of the natural gas prospects in the Reed Bank.
"We can't proceed without them, that's the reality--unless we
can enforce our own right to keep them out. In the end, it depends
on" both governments, Manuel Pangilinan told Dow Jones Newswires
after the annual meeting of Philippine Long Distance Telephone Co.
(TEL.PH). Mr. Pangilinan is also the chairman of PLDT.
The Department of Energy has extended Forum Energy PLC's
(FEP.LN) right to drill in the Reed Bank by two years to 2015, so
Philex Petroleum and Cnooc still have time to reach an agreement,
he said.
Philex Petroleum owns a majority stake in London-based Forum
Energy.
In October Philex Petroleum called off a planned survey of a sea
floor in the Reed Bank, necessary to determine potential gas
reserves, due to concerns over harassment by the Chinese navy as
had happened earlier.
After Philex Petroleum made a request last year to the Chinese
government to consider the joint exploration, Beijing nominated
Cnooc to be the partner for the project.
Mr. Pangilinan said a joint exploration with Cnooc will also
require the Philippine government's approval.
Write to Cris Larano at cris.larano@dowjones.com
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