Total, Jadestone opt out of offshore Philippines license
Nov. 18, 2020
Total and partner Mitra Energy (SC-56) have decided to relinquish and terminate Service Contract 56 offshore the Philippines.
(Courtesy Total)
Offshore staff
SINGAPORE – Total and partner Mitra Energy (SC-56) have decided to relinquish and terminate Service Contract 56 (SC56) offshore the Philippines.
They have notified the Philippines Department of Energy of their intentions.
Jadestone Energy, which owns Mitra, said SC56 was a legacy concession inherited from the previous management.
The recent decision not to drill a well removes any further deepwater frontier exploration commitments, the company added.
However, the partners will be subject to a payment in respect of unfulfilled work commitments. Jadestone’s share will be met from a portion of the proceeds of an arbitration ruling announced early this year.
The company also anticipates incurring an impairment charge of around $50.5 million, relating to historical exploration capex associated with the previous management.
