DOE OKs relinquishment of SC 14 consortium

The Department of Energy (DOE) has cleared the plan of Service Contract (SC) 14 consortium to surrender the license areas in northwest Palawan after 40 years of production.

The DOE approval covers SC 14-Block A (Nido), B (Matinloc and Retention Area), B1 (North Matinloc), D (Retention Area), Tara and Libro.

In a letter signed by Energy Secretary Alfonso Cusi, the DOE said the consortium has settled the remaining financial obligations of SC 14 for the subject operational blocks.

“Thank you for your support in the government’s oil and gas exploration program. We hope to work with you again in future endeavors,” the letter read.

SC 14 Nido and Matinloc blocks have ceased production in late 2019.

In over four decades of operations, Nido and Matinloc were able to produce 18.9 million barrels of oil (MMBO) and 12.5 MMBO, respectively.

With the conclusion of production operations in the license areas, the SC 14 consortium submitted the notice of surrender of SC to the DOE in February 2021.

In its definitive information statement, Philodrill said the $150,000 work program for 2021 and budget for the administrative and accounting activities related to the closing of the joint venture office in Mandaluyong from January to March last year was approved by the DOE.

A training/scholarship fund obligation amounting to P23.66 million and outstanding rental fee for the SC 14D retention area of P343,730 was paid to the DOE by the consortium.

The remaining JV assets, several pieces of furniture, and three vehicles were auctioned off as directed by the DOE. Proceeds amounted to P842,026.21, part of which will be used to settle outstanding rental fees for the consortium’s office and the parking spaces before being remitted to the DOE.

The consortium was composed of Philodrill as operator, Alcorn Petroleum, Oriental Petroleum, Nido Production, ACE Enexor Inc. (then Phinma Energy), and Forum Energy.

The Nido and Matinloc platforms have been turned over to the DOE and in turn, were donated by the DOE to the Department of National Defense (DND), Philodrill said.

The facilities have been repurposed and are being utilized as forward observation posts by the military in the West Philippine Sea.

The Nido and Matinloc blocks are the first commercial offshore oilfield operations in the country.