PXP stays in hunt for new oil, gas fields

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May 2, 2026 | 12:00am

MANILA, Philippines — Despite the ongoing West Philippine Sea exploration ban, PXP Energy Corp. remains on the lookout for new oil and gas resources under its other key government petroleum deals.

The listed upstream oil and gas firm of tycoon Manuel V. Pangilinan said it continues to maintain its position in Service Contract 72 (Recto Bank) and SC 75 (northwest Palawan), both of which remain under force majeure.

Exploration activities in these areas are suspended due to ongoing geopolitical tensions in the disputed waters.

Still, PXP is actively advancing activities across its service contract portfolio in accordance with government-approved work programs and applicable regulatory requirements.

“The company remains focused on maintaining operational readiness and managing its portfolio with financial discipline,” PXP told the Philippine Stock Exchange yesterday.

“With Galoc production approaching the end of field life, PXP continues to assess opportunities that may provide earlier cash flow while maintaining exposure to longer-term exploration upside,” it added.

Located offshore northwest Palawan, the Galoc oil field currently yields around 1,000 barrels of oil per day from its two remaining wells: Galoc-5 and Galoc-6.

Although output remains stable, the resource is maturing and experiencing natural depletion.

Last December, PXP secured increased interest in Galoc under SC 88, a new contract that allows the company and its partners to continue petroleum operations in the area after the expiration of their previous deal.

This resulted in a 2.4-percent rise in petroleum revenues for PXP during the first quarter, climbing to P20.9 million from P20.4 million.

Despite the higher revenues, however, the company still incurred a core net loss of P11.7 million for the period.