Forum Energy said the DOE cited the historic case that the Philippines filed against China over the South China Sea.
The oil exploration area, the Reed Bank, is found in the disputed waters.
“Forum Energy, the UK incorporated oil and gas exploration and production company with a focus on the Philippines, today confirms that the Philippine Department of Energy has granted a force majeure on Service Contract 72 (SC 72) because this contract area falls within the territorial disputed area of the West Philippine Sea (South China Sea) which is the subject of an United Nations arbitration process between the Republic of the Philippines and People's Republic of China,” the firm said in a statement Monday, March 2.
The DOE said force majeure “refers to events beyond the reasonable control of the affected party.”
Forum Energy said: “Under the terms of the force majeure, all exploration work at SC 72 is immediately suspended (effective from December 15, 2014) until the DOE notifies the company that it may commence drilling. As a result, the second subphase of SC 72 has been put on hold until further notice.”
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