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MANILA, Philippines - The standoff between Manila and Beijing over disputed territories in the West Philippine Sea may delay development of what could be the Philippines' biggest natural gas find to date, according to the country's biggest mining firm.
Manuel V. Pangilinan, Philex Mining Corp. chairman, said China's gunboat diplomacy may affect the work program for the Sampaguita field, which is covered by Service Contract 72 in the Recto Bank.
"There's always the possibility of a delay because of the political concerns between Philippines and China. And that has to be sorted out. If Chinese gunboats appear in the horizon, then there could be delays as those rigs and survey ships are owned by other countries. And these companies would not want to get involved in any kind of regional conflicts," he said.
China has insisted that the area covering the Sampaguita gas field is part of the Spratly Islands, which it claims as part of its territory.
A recent independent study commissioned by Philex unit Forum Energy PLC estimated the Sampaguita gas field's gross reserves at over 11 trillion cubic feet of gas.
The volume dwarfs the Malampaya natural gas field's reserves, which is placed at 2.7 trillion cubic feet.
Energy Secretary Jose Rene D. Almendras said the Sampaguita field could potentially supply a hundred years' worth of gas to the Philippines, as against Malampaya's 25-year shelf life.
The Malampaya supplies 40 percent of Luzon's electricity requirements through three power plants in Batangas. The field, however, is projected to last only up to 2024.
Pangilinan said his group may tap an oil major to help develop the Sampaguita gas field, which could take up to 10 years.
"These are grownup numbers and could cost billions of dollars. You'll need an international oil major to develop it. Someone with the expertise and the marketing power to place the gas, cause even if you have all the money in the world, to whom do you sell the gas?" he said.
He said talks are ongoing with a number of big oil firms, adding that his group is not discounting a tie-up with a Chinese company.
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