PXP not out of woods yet

PXP Energy Corp., led by tycoon Manuel V. Pangilinan, continues to slug it out in terms of managing costs amid uncertainties facing its key projects, including two exploration fields that have been caught up in the friction in the West Philippine Sea.

Last October, the Department of Energy (DoE) granted a force majeure to the commitments of the two petroleum exploration service contracts in the West Philippine Sea.

The suspension set back the projects covered by Service Contract 75 and Service Contract 72 since late 2020.

While the issuance of the DoE order allowed the extension of the contracts equivalent to the force majeure period, the company is incurring costs, primarily interest on loans.

But since the projects are under a government suspension order, it would have to eventually absorb the costs of the delay.

PXP’s expenses on the projects, with the freeze order, are considered recoverable costs, subject to a DoE audit.

Listed PXP holds 50 percent interest in SC 75 located in northwest Palawan.

Forum Energy Ltd., in which PXP holds a direct and indirect interest of 79.13 percent, has a 70-percent participating interest in SC 72, also in northwest Palawan, through its wholly-owned subsidiary Forum.

PXP, aside from the geopolitical uncertainty, faces energy transition pressures and volatile oil prices.

It reported year-to-date revenues of P21.9 million, a decline due to lower crude oil prices, though its petroleum revenues rose to P64.8 million, driven by production from the Galoc oil field.

Tough shrinks needed

Recent developments involving officials bashing each other may have prompted the upgrade in salaries for psychologists employed in government.

The official explanation is that prioritizing mental health programs is fundamental to fostering a healthy and productive workforce.

Under Budget Circular 2024-5, those employed in the Psychologist I level will have a salary grade of SG 16 from SG 11, or P35,000 a month from P27,000.

Psychologist II pay will rise to SG 18 of P42,000 monthly from SG 15 or P36,000.

Psychologist III salaries will be upgraded to SG 20 at P57,000 monthly from SG 18.

The higher salary grades take effect on 1 January 2025.

The salary adjustments were requested by the National Center for Mental Health and the Department of Health to attract more psychologists with higher education, such as a master’s degree and a 200-hour internship, to the government.

With the higher salaries, the government hopes to recruit more psychologists to cope with the increasingly belligerent political atmosphere amid the fog of war ahead of the May polls.