Australia’s Kairiki Energy has signed an agreement with its creditor IMC Oil & Gas Investments to divest from its Yilgarn Petroleum Philippines business due to uncertainty over the offshore Palawan contract areas.

The company said that it terminated the binding term sheet with Focus Oil and Gas for the disposal of its entire interest in the petroleum assets.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Yilgarn holds joint venture interests in offshore oil and gas permits in the Philippines, which include service contract 54A with 30.1% participating interest and service contract 54B with 40% interest.

"The JV should enter sub-phase seven at the end of the moratorium period to drill one well."

The Philippines Department of Energy (DOE) previously approved a request for a three-year moratorium on service contract 54 from 5 August 2014 to 5 August 2017.

The approval gave time to the joint venture (JV) to study the development of the discovered marginal resources in the block.

The JV should enter sub-phase seven at the end of the moratorium period to drill one well.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Completion of the disposal is subject to various conditions, which include the company obtaining shareholder approval for it pursuant to ASX Listing Rule 10.1 and 11.2.

Kairiki also needs to notify other JV partners of the change of control of Yilgarn relating to the joint operating agreement.

The company should also provide its creditor with the proposed work programme and budget from the operator for the current year.