PXP gets OK to continue Galoc oil work

PXP Energy Corp., the upstream oil and gas firm led by businessman Manuel V. Pangilinan, has secured approval from the Department of Energy to extend work at the Galoc oil field, giving the company and its partners the legal go-ahead to continue operations, though this does not yet mean activity will immediately resume.

In a stock exchange disclosure on Tuesday, PXP said the DOE has transmitted the original copy of the executed Petroleum Service Contract (SC) 88, which the company said “signifies the formal effectivity of SC 88 and was issued for proper safekeeping and implementation.”

SC 88 replaces the expired contract covering the Galoc field and “allows the consortium to continue petroleum operations and optimize the recovery of remaining reserves in the Galoc field area,” according to the disclosure.

The new service contract was executed on 18 December 2025 between the government and a consortium led by NPG Pty. Ltd. as operator, with The Philodrill Corporation and PXP subsidiary Forum Energy Philippines Corp. as partners. It covers an offshore area of about 83,450 hectares in the Northwest Palawan Basin.

PXP noted that Galoc is no longer a new or fast-growing oil field. “The Company notes that Galoc is a mature and depleting field, as previously disclosed,” it said.

Still, the company said the new contract “provides a framework to extend operations and maximize value from remaining resources, subject to technical and commercial considerations,” meaning any future activity will depend on further technical studies and business decisions.

Aside from SC 88, PXP is also actively involved in SC 14C-1 Galoc near Palawan, while also holding stakes in SC 75 in Northwest Palawan.

Forum Energy Ltd., where PXP holds both direct and indirect interests, has stakes in SC 72, also in Northwest Palawan. Both areas, however, remain inaccessible due to ongoing territorial disputes with China.