MANILA, Feb 21 (Reuters) - A unit of the Philippines' PhilexPetroleum Corp wants to do more drilling around anatural gas field in contested waters in South China Sea despitea deepening diplomatic dispute between Manila and Beijing overthe area.
London-listed Forum Energy Plc, which ismajority-owned by Philex, plans this year to conduct a survey toidentify and evaluate other gas prospects near its Sampaguitagas field in the Reed Bank, where the Philippines is spendingmillions to harden its military presence.
Territorial disputes between the Philippines and China havehampered Forum's plan to drill at least two more appraisal wellswithin the Service Contract 72 exploration permit awarded to itby the Philippine government in 2010.
In March 2011, two Chinese vessels threatened to ram asurvey ship contracted by Forum in the Reed Bank area,triggering renewed tensions between the two countries. China lays claim to virtually all the South China Sea while thePhilippines and four other countries - Brunei, Malaysia, Taiwanand Malaysia - claim certain parts.
"A seismic reprocessing programme is being planned in 2013to further assess the prospectivity of other areas outside theSampaguita field within SC 72," Forum said in a filing linked toa Philex disclosure on Thursday to the Philippine StockExchange.
China says it owns the Reed Bank, but the Philippinesinsists it has sole sovereignty over the waters within its200-mile exclusive economic zone.
"We remain in close dialogue with the Philippine governmenton how best to progress the development of this importantasset," Forum said.
The South China Sea holds around 11 billion barrels of oiland 190 trillion cubic feet (tcf) of natural gas in proven andprobable reserves, surpassing untapped resources in Europe,according to the U.S. Energy Information Administration
The Philippines' Defence Department said on Thursday it willopen tenders next month for 979 million pesos ($24 million)worth of radars, sensors and weapons for two coastal watchstations on the western Palawan islands to help secure oil andgas exploration in the Reed Bank.
Fernando Manalo, defence undersecretary for finance,munitions, installations and materiel, told reporters thePhilippines also wants to buy inflatable boats, small guns, andnight vision goggles.
Sources in the Defence Department familiar with the projectsaid four coastal radar stations will be set up on Palawan. Abid document on its website says the equipment is "for theenhancement of maritime domain awareness and security of theDepartment of Energy service contract areas."
