Sanctions Await Non-Performing Oil and Gas Service Contractors
The non-performing interest holders of oil and gas exploration projects have their days numbered as the Department of Energy (DoE) is intent on imposing sanctions that will go all the way to revocation of their service contracts.
It was learned from sources at the department that they already identified several service contract (SC) holders who have not been complying with their work commitments.
One of those reportedly in the radar of the DoE is the Camago-Malampaya Oil Leg (CMOL) project. While Philippine National Oil Company (PNOC) is the lead operator in the project, it was indicated that its private partner, Burgundy Global Exploration Corporation, has yet to show firmness in its commitment to the project.
"There are several service contracts that we have been re-evaluating. If they won't shape up, they can be disbanded," a highly-placed source said.
In a separate interview, Energy Undersecretary Ramon Oca emphasized that the instruction from Energy Secretary Rene D. Almendras would be "to review the performance of all service contracts and if necessary, apply appropriate sanctions or penalties."
He further explained that the extent of penalties "depends on performance - it could be fines and revocation (of contract) could be part of it; or it could be a warning. …