PXP Energy Corporation announced its participation in the signing of three new Petroleum Service Contracts (SCs) as part of the Philippine government’s initiative to revitalize petroleum exploration and attract investments in the country’s upstream energy sector.
The contracts were signed during the Presentation of eight Petroleum Service Contracts administered by the Department of Energy (DOE) and the President of the Republic of the Philippines.
The three service contracts awarded to PXP include SC 80 and SC 81 in the Southwest Sulu Sea, and SC 86 (Octon Block) in Northwest Palawan.
These projects represent a significant expansion of PXP’s exploration portfolio and reinforce the Company’s commitment to supporting the country’s energy self-sufficiency goals.
Service Contracts 80 and 81 (Southwest Sulu Sea)
SC 80 and SC 81 are jointly administered by the DOE and the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) through its Ministry of Environment, Natural Resources and Energy (MENRE).
These contracts cover offshore exploration areas in the Sulu Sea Basin, awarded following the first petroleum bidding round in the BARMM area in 2024.
SC 80 spans approximately 780,000 hectares and includes the Dabakan and Palendag gas discoveries, with contingent resources of around 470 billion cubic feet (BCF) of gas and 5.4 million barrels (MMBbl) of condensate.
The Halcon prospect, identified as a potential multi-trillion cubic feet (TCF) gas resource, will undergo further evaluation.
SC 81 covers approximately 532,083 hectares and contains wells with recorded oil and gas shows, confirming the presence of an active petroleum system.
Both contracts will focus on technical evaluation and de-risking of identified prospects, including the Halcon prospect, during the initial sub-phase.
SC 86 (Octon Block, Northwest Palawan)
SC 86 encompasses approximately 132,000 hectares in the Malajon area of Northwest Palawan, adjacent to the producing Galoc Field.
This contract replaces SC 6A (Octon) and includes additional acreage from SC 74.
The Joint Venture for SC 86 consists of Philodrill Corporation (Operator – 72.1662%), Anglo Philippine Holdings Corp. (14.146%), and PXP & Forum Energy Philippines Corporation (combined 13.6878%).
The initial sub-phase will focus on advanced subsurface work, building on geological and geophysical studies conducted under SC 6A, to finalize the well location and design for the Malajon Prospect and further appraise the Octon Discovery.
PXP Chairman Manuel V. Pangilinan stated, “The signing of SCs 80 and 81 in the Sulu Sea, along with SC 86 in Northwest Palawan, marks a significant step forward for both PXP and the Philippine energy sector.
These new projects expand our exploration presence in areas with proven exploration history and untapped potential, while strengthening our position in the prolific Northwest Palawan basin.
“We remain committed to supporting the Philippine Government’s goal of achieving energy self-sufficiency through the responsible development of indigenous resources.
“In collaboration with the DOE, BARMM, and our industry partners, we aim to contribute meaningfully to the nation’s long-term energy security and sustainability.”
