Forum Energy, a UK-based oil and gas exploration and production company, has declared a force majeure on Service Contract SC72, offshore the Phil ippines.
The company has said that Philippine Department of Energy (“DOE”) has granted a force majeure on activities in the area because it is situated within the territorial disputed area of the West Philippine Sea.
The dispute is the subject of an United Nations arbitration process between the Republic of the Philippines and People’s Republic of China.
Under the terms of the force majeure, all exploration work at SC 72 is immediately suspended until the DOE notifies the Forum that that it may resume drilling. As a result, the second sub-phase of SC 72 has been put on hold until further notice.
The terms of the second sub-phase and all subsequent sub-phases will be extended by the term of the force majeure.