PXP Energy Corp. is preparing for a demanding and costly period of exploration, following the acquisition of three new petroleum service contracts. Chairman Manuel V. Pangilinan described the undertaking as a lengthy and intricate process, one demanding considerable patience and a long-term vision.
The company intends to dedicate “several million dollars” to the necessary technical work. This investment will focus on two blocks in the Sulu Sea – designated Service Contracts 80 and 81 – and SC 86, encompassing the Octon Block off the northwest coast of Palawan.
These new projects are designed to bolster PXP’s exploration footprint in the Sulu Sea, a region already known for successful discoveries and brimming with potential. Simultaneously, they aim to solidify the company’s standing within the highly productive Northwest Palawan basin.
PXP has committed to rigorous technical studies and careful management of its operations. Beyond these immediate efforts, the company continues to monitor opportunities in the South China Sea, acknowledging the ongoing challenges posed by maritime disputes that have hindered progress in that area.
This ambitious exploration push occurs during a period of financial strain for PXP. The company recently reported a net loss of P16.1 million in the third quarter, a downturn attributed to declining crude prices, reduced sales, and increased financial expenses.
Operating revenues experienced a significant decrease, falling by 21.9% to P21.9 million, largely due to the lower price of crude oil and a smaller volume of oil lifted. These short-term financial headwinds haven’t diminished the company’s long-term outlook.
Despite current challenges, Pangilinan emphasizes the strategic importance of the Sulu Sea and Palawan blocks to PXP’s future growth. The company is now actively preparing to begin exploration, including detailed geological surveys and comprehensive technical evaluations, fulfilling its commitments to the Philippine government.
