PXP Energy Expands Exploration Portfolio with the Signing of Three New Petroleum Service Contracts

PXP Energy Corporation (“PXP” or “the Company”) announced its participation in the Presentation of eight (8) Petroleum Service Contracts (“SC”) recently signed by the President of the Republic of the Philippines. These contracts were administered by the Department of Energy (“DOE”) as part of its ongoing initiative to revitalize petroleum exploration and attract new investments in the country’s upstream sector.

​Among the eight service contracts, three involve PXP: SC 80 and SC 81 in the Southwest Sulu Sea, and SC 86 (Octon Block) in Northwest Palawan, where PXP’s subsidiary, Forum Energy Philippines Corporation (“Forum”), is also a participant.

Service Contracts 80 and 81 (Southwest Sulu Sea)

Service Contracts 80 and 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”). The event marked the formal award of two offshore exploration areas in the Sulu Sea Basin, following the launch of the first petroleum bidding round in the BARMM area in 2024.

Both contracts share the same Joint Venture composition and participating interests: Triangle Energy (Global) Limited of Australia (Operator – 37.5%), Sunda Energy Plc of the United Kingdom (37.5%), PXP (12.5%), and The Philodrill Corporation (12.5%), which together submitted the sole and qualified bid in February 2024.

Service Contract 80 (formerly PDA-BP-2) – Covers approximately 780,000 hectares, including the Dabakan and Palendag gas discoveries, previously drilled by ExxonMobil. According to a report by the former operator, Jadestone Energy, these fields have combined contingent resources of around 470 billion cubic feet (BCF) of gas and 5.4 million barrels (MMBbl) of condensate. In addition, earlier contractors identified the Halcon prospect, an outboard basin floor fan, with the potential to host multi-trillion cubic feet (TCF) of prospective gas resources.

Service Contract 81 (formerly PDA-BP-3) – Encompasses approximately 532,083 hectares and contains several wells with recorded oil and gas shows from earlier drilling by both foreign and local operators. These findings confirm the presence of an active petroleum system within this part of the basin.

During the first sub-phase of the two service contracts, previously identified prospects and leads, including the Halcon prospect, will undergo further technical evaluation and de-risking to advance them to drillable status.

SC 86 (formerly Octon Block, Northwest Palawan)

Service Contract 86 covers approximately 132,000 hectares in the Malajon area of Northwest Palawan, adjacent to the producing Galoc Field. The new contract replaces Service Contract 6A (Octon), previously operated by the same consortium, and now includes additional acreage formerly part of SC 74.

The Joint Venture consists of Philodrill Corporation (Operator – 72.1662%), Anglo Philippine Holdings Corp. (14.146%), and the PXP & Forum (combined 13.6878%). The initial sub phase of SC 86 will focus on advance subsurface work, building on the geological and geophysical (G&G) studies conducted under the former SC 6A. These activities aim to finalize the well location and design for the Malajon Prospect, and to further appraise the Octon Discovery.
PXP Chairman Manuel V. Pangilinan said,

“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 the Sulu Sea, an area with a proven exploration history and promising untapped potential, and strengthens PXP’s presence in the highly prolific Northwest Palawan basin.

We remain fully committed to supporting the Philippine Government’s goal of achieving energy self-sufficiency through the responsible development of the country’s indigenous resources. In close coordination with the DOE, BARMM, and our industry partners, we aim to contribute meaningfully to the nation’s long-term energy security and sustainability.”
 
PXP is an upstream oil and gas company incorporated in the Philippines whose shares are listed on the Philippine Stock Exchange.