Phinma Energy relinquishes stake in Mabini Geothermal

Phinma Energy Corp. is relinquishing its participating stake in the Mabini Geothermal Service Contract (GSC) to its partner Basic Energy Corp. (BEC), a year after withdrawing from the geothermal project in Batangas.

In a disclosure to the Philippine Stock Exchange yesterday, BEC said it signed a deed of assignment with Phinma Energy.

Under the deal, Phinma Energy assigned its rights, interests, privileges, duties and obligations under the GSC No. 8 to Basic Energy “by reasons of its withdrawal from the joint operating agreement effective Aug. 21, 2018.”

BEC said the transaction is subject to the approval of the Department of Energy.

Awarded to BEC in 2007, GSC covers 3,841 hectares of land in San Teodoro, Mabini, Batangas.

It partnered with Phinma Energy,formerly Trans-Asia Oil and Energy Development Corp., to develop the resource.

In 2015, both firms inked a farm-in agreement and deed of assignment which called for Phinma Energy’s acquisition from BEC of 25 percent participating interest in the Mabini GSC.

As part of its farm-in obligation, Phinma Energy completed a comprehensive gravity geophysical program in the area of interest.

Last year, the partners committed to drill a confirmatory well in the project to confirm its commercial viability to produce baseload power.

In doing the confirmatory well, BEC president and COO Oscar de Venecia said the company would be identifying the source of the steam for temperatures, size of the field.

He said the company budgeted P50 million for the drilling of the confirmatory well.