Philex Petroleum pares losses to

Philex Petroleum Corporation has narrowed down its streak of losses to R118.1 million in this year’s three quarters from a wider net loss of R376.9 million in the same period in 2014.

The company said the attributable net loss to parent firm had also been cut significantly to R65.9 million during the period vis-à-vis R188.8 million a year ago.

“The net loss primarily resulted from lower petroleum revenues contributed by its subsidiary, Forum Energy Plc, due to a drop in crude oil prices and lower production from Service Contract 14-C1 Galoc,” the firm said.

It has been qualified that its net loss “decreased year-onyear due to a charge in impairment” in the service contract that was still held last year by affiliate Pitkin Petroleum.

While it is now trimming its base of losses, it may take longer yet for the oil firm to become financially afloat because many of its petroleum exploration ventures are also on interim suspension.

The proposed drilling of Forum Energy at its prospect along Recto Bank had been placed on “moratorium” by the Philippine government due to the lingering diplomatic strife involving the West Philippine Sea/South China Sea issues.

The drilling of two wells at Service Contract 72 in Palawan should have commenced August this year, but the planned work program had been stopped due to the unresolved concerns at the disputed territories.

Additionally, the Department of Energy (DOE) has declared force majeure on its Service Contract 75 that covers its recently awarded exploration area along the Northwest Palawan basin.

“Under the terms of the force majeure, all exploration work at SC75 shall be immediately suspended effective from the end of its first sub-phase,” Philex Petroleum said.

That shall take effect on December 27 this year, “until the date the DOE notifies the company to resume petroleumrelated activities.”