Philippines should pursue gas drilling in Recto Bank, says solon

A lawmaker on Tuesday said two offshore gas drilling activities in Recto Bank must be pursued for the Sampaguita gas discovery despite China's continued incursions at the Philippine territorial waters.

“We have no choice but to carry on with the drilling activities because the Sampaguita gas discovery in Recto Bank has the potential to energize the entire national grid – not just Luzon – for the next 20 to 30 years,” Surigao del Sur Representative Johnny Pimentel, chairman of House strategic intelligence committee, said in a statement.

Pimentel further defended the Sampaguita gas discovery as it could yield up to "$18.2 billion (P910 billion) in future royalties for the government, based on a 60 percent net share."

“In fact, if the groups clamoring for a government buyout of the Malampaya gas field really want to carry on with their foolishness, they should target Sampaguita, which is far more valuable to the country’s future energy security,” Pimentel said.

He said Sampaguita also has up to 4.6 trillion cubic feet of gas, while Malampaya, the main power grid of Luzon, has only 1.6 trillion cubic feet of residual gas.

“There is even one study suggesting that the entire Recto Bank has up to 20 trillion cubic feet of potential gas in place,” Pimentel said.

Aside from this, Pimentel also warned the Department of Energy against imposing another force majeure on Forum Energy Ltd., which is the operator of Sampaguita.

“A second force majeure would be a colossal sign of weakness on the part of the Philippine government,” Pimentel said.

“We also do not want Forum Energy to invoke the tensions as an excuse to voluntarily postpone the programmed gas drilling activities,” he added.

Pimentel supports the seamless transfer of Malampaya  to Udenna Corporation, owned by Dennis Uy, Davao businessman and President Rodrigo Duterte's ally.

Pimentel also criticized the senators' "grandstanding" over Shell Petroleum's decision to sell its operating stake, which includes the offshore Malampaya gas field, to Udenna Corp.  

Senator Sherwin Gatchalian had said the DOE's approval of the Udenna-Chevron deal on the sale of Malampaya Consortium shares was rigged but the agency denied it, saying the senators were misguided.—Consuelo Marquez/LDF, GMA News