- Gas2Grid’s (GGX) contract for its sole Philippine oil and gas project is understood to be terminated after the company’s plea for a COVID-induced force majeure was rejected
- The ASX-lister said it received a letter from the Filipino Department of Energy advising it would be terminating the contract, claiming GGX had failed to comply with all the requirements set forth in the Technical Moratorium
- G2G contests it had claimed force majeure under the terms of the SC 44 contract amid increased COVID restrictions, noting the letter did not include any explanations for rejecting the force majeure consideration
- The ASX-lister maintains it is impossible to gain access to the well site while the country’s Enhanced Community Quarantine and State of Calamity remains in force
- Gas2Grid shares are down 28.6 per cent following the announcement to trade at 0.3 cents
Gas2Grid’s (GGX) contract for its sole Philippine oil and gas project is understood to be terminated after the company’s plea for a COVID-induced force majeure was rejected.
The ASX-lister said it received a letter from the Filipino Department of Energy advising it would be terminating the contract, claiming GGX had failed to comply with all the requirements set forth in the Technical Moratorium.
G2G contests it claimed force majeure under the terms of the SC 44 contract amid increased COVID restrictions and requested an extension from the Department of Energy to complete drilling operations at the NM-1 well within the project.
Gas2grid holds an 100 per cent interest in SC 44 which is located onshore Cebu in the Philippines.
Further, the company maintains it is “impossible” to gain access to the well site while the Philippine’s Enhanced Community Quarantine remains in force and the country remains in a State of Calamity.
According to GGX, the letter did not include any explanations for the decision to reject the force majeure consideration. Consequently, the company will be seeking a reconsideration of the decision with its legal advisers.
Gas2Grid shares are down 28.6 per cent following the announcement to trade at 0.3 cents at 12:55 pm AEST.