sc 55 , page-12

Some positive news (for a change) from MB.com.ph



"
Petilla aids BHP Billiton secure drilling approval
By Myrna M. Velasco
Published: June 10, 2013

After giving them an initial rebuke, Energy Secretary Carlos Jericho L. Petilla has softened his stance on Australian firm BHP Billiton and has even extended them help as to their dilemma on securing host community approval for their scheduled drillings at Cinco-1 well in Palawan basin.

BHP Billiton is the operator of the petroleum block covered by Service Contract 55. Its co-interest holders in the venture are Australian firm Otto Energy and Filipino partner Trans-Asia Oil and Energy Development Corporation.

Petilla qualified that he just blurted out plans of giving SC 55 to other interested parties because he was given an initial impression that BHP Billiton was already unenthusiastic into proceeding with its drilling plans at Cinco well.

However, he noted that after his personal meeting with the key executives of the company as well as its partner-firms, he was acquainted of their dilemmas and their keen interest to still pursue the project.

“I was surprised that they (BHP Billiton) requested for a meeting…we are very much interested to do the drilling, that’s why we (wrote) a force majeure letter,” the energy chief related as to the run of his conversation with the Australian firm.

Petilla similarly hinted that the Department of Energy (DOE) may acquiesce to any request of the SC 55 consortium-members to defer their drilling program, pending moves at securing the approval of the Palawan Council for Sustainable Development (PCSD) on their drilling program.

This time, Petilla also opened his department’s doors into helping BHP Billiton to negotiate with the local government of Palawan so the gridlock on its required permit would finally be resolved.

He noted that he already started touching base with the newly-elected provincial officials of Palawan on intent of re-opening discussions on SC 55’s need for a PCSD permit before it can kick off with its drilling activity.

Petilla emphasized that the scuffle stemmed from the purported reluctance of BHP Billiton to undertake or extend any corporate social responsibility (CSR) undertaking for the host community of Palawan.

Apparently to the host local government, that was an unacceptable proposition.

On the other, BHP Billiton supposedly had its hands tied because doing such will render it violating laws on foreign corrupt practices act at its home base.

The energy secretary averred that a ‘middle ground’ has to be established; and how such dilemmas must be addressed as the energy department fine-tunes some policies for the oil and gas sector. "
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The NEXT 12 MONTHS will be very interesting for all of
us long term OEL holders!!!

I will continue to hold an overweight position in OEL and
keep my fingers and toes crossed that my financial health
is now on the improve!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!