None of the major oil companies bid. Only local Philippine companies.
Oil Majors Avoid Philippine Bids For China-Claimed Sea Blocks
"The Philippines received bids from local companies to explore offshore areas claimed by China in a tender that the world’s biggest oil and gas firms avoided as the nations feud over territory.
Makati City-based Helios Petroleum and Gas Corp. submitted offers for two of the blocks, while a group including Philex Petroleum Corp. (PXP) bid on one, according to Energy Undersecretary Jose Layug. Two of the three areas fall within China’s so-called nine-dash map of the South China Sea."
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“We normally receive bids from medium-size companies, not from the big boys,” Layug told reporters in Manila today. “We’re very happy with the turnout.”
The Philippines, a U.S. ally, this month denounced “intimidation” from China and warned of possible “physical hostilities” at a regional security meeting that included Secretary of State Hillary Clinton. Units of Total SA (FP), Exxon Mobil Corp. (XOM) and Royal Dutch Shell Plc, which were among about 40 companies prequalified for the auction, didn’t enter bids.
“No one can afford to upset the Chinese and be marginalized in the Chinese market,” Gordon Kwan, the Hong Kong-based head of regional energy research at Mirae Asset Securities Ltd., said by phone. “The Philippines is simply not a must-have market for major oil companies,” he said, adding that only businesses “with no chance in China” would bid."
http://www.bloomberg.com/news/2012-0...med-areas.html
