April 19, 2021 – Notwithstanding the many challenges brought about by the COVID-19 crisis, ACE Enexor, Inc. (ACEX), AC Energy’s listed oil and gas exploration and production unit, continues to gear up for its gas drilling project offshore West Palawan under Service Contract (SC) 55.
“We value the opportunity to help the country in its quest for energy security by exploring for and developing indigenous gas resources,” said Eric Francia, Chairman and CEO of ACE Enexor, Inc., in the company’s virtual Annual Stockholders’ Meeting. “Barring any unforeseen events, Enexor will undertake definitive drilling planning in the second quarter of 2021.”
After the Department of Energy (DOE) confirmed SC 55’s entry into the Appraisal Period effective on 26 April 2020, Enexor, through its subsidiary, Palawan55 Exploration and Production Corporation, carried out technical studies to mature at least one prospect to drillable status. ACEX filed a request for a one-year force majeure in September 2020 due to the far-reaching effects of the ongoing pandemic to the global upstream petroleum industry. The request is currently under review by the DOE.
“The proposed drilling program will be a milestone in Enexor’s efforts to help the country develop indigenous gas resources as a pathway to energy security and the energy transition. We are banking on the support of our consortium partner, Enexor’s shareholders, and government regulatory bodies, to achieve success in this undertaking,” concluded ACE Enexor President & COO Raymundo Reyes Jr..
ACEX recognizes the urgency to develop clean, sustainable, and reliable energy to support the growing Philippine population, which the Philippine Statistics Authority expects to exceed 115 million by mid-2025. The company believes that tapping domestic resources and developing indigenous energy could very well advance energy security for the country.
The company is looking to develop a deep-water gas-to-power project in anticipation of the conclusion of the Malampaya project, which is the only producer of indigenous natural gas to date. It has been in operation since 2001 and its concession contract is scheduled to end in 2024. The DOE has expressed concern over Malampaya’s dwindling supply, and compounded by last year’s countrywide economic slowdown, its gas output for January to November 2020 shrank to 108 billion cubic feet from an all-time high of 156 billion cubic feet the previous year.
“We are cautiously optimistic given the promising trends of the first quarter of 2021, and we will continue to pursue our vision to discover and develop clean, reliable and indigenous energy resources for the benefit of the country and our people,” affirmed Francia.