Listed-firm Petroenergy Resources Corp. has sold its 1.03-percent participating interest in Service Contract 14C or the Galoc oil field in offshore Palawan, for $800,000 per percentage interest point.
In a disclosure to the Philippine Stock Exchange, Petroenergy head of corporate and legal affairs Arlan P. Profeta said the sale took effect on June 30.
Petroenergy said it signed the deed of sale, prepared by field operator Galoc Production Co. WLL (GPC), yesterday and sent the same to GPC.
"We have, therefore, begun the process of transferring the participating interest to the consortium, the said sale being considered by Petroenergy as consummated," Profeta said.
"The decision to proceed with the sale was made because management believes that the minimal participating interest in the Galoc oil field will not contribute significantly to the revenue, considering the risks involved," Profeta explained.
GPC holds a 58.2-percent interest in SC 14C, while Nido Petroleum Philippines Pty. Ltd has a 22.28-percent stake. Other stakeholders included Philodrill Corp. (7.03 percent); Oriental Petroleum and Minerals Corp./Linapacan Oil Gas and Power Corp. (7.75 percent); Forum Energy Philippines Corp. (2.27 percent); and Alcorn Gold Resources Corp. (1.53 percent).
In a related development, GPC said there "continues to be a delay in the reconnection of the floating production storage and offloading (FPSO) facility, following the disconnection last week.
"The delay is due to misorientation and deformation of the mooring and riser system that connects the FPSO to the seabed and subsea wells," GPC explained.
Last week, GPC decided to disconnect FPSO from the mooring and riser system due to adverse weather.
"An underwater survey was undertaken to establish the extent of the problem and an offshore construction vessel has been mobilised to the field to undertake remedial work. At this time the scope of the necessary remedial work is being established along with the likely duration," GPC added.
http://business.inquirer.net/money/topstories/view/20090701-213394/Petroenergy-sells-interest-in-Galoc
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