PXP Energy upbeat on BARMM petroleum drilling prospects

MANILA, Philippines — PXP Energy Corp., chaired by tycoon Manuel V. Pangilinan, is keeping its hopes up for the possible exploration of two petroleum blocks in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).

The listed firm and its joint venture (JV) partners earlier submitted bid documents for Pre-Determined Area-BARMM Petroleum-2 and PDA-BP-3, both located in the Sulu Sea Basin.

“PXP is hopeful that its applications for both PDA-BP-2 and PDA-BP-3 will be awarded to the JV soon,” it told the Philippine Stock Exchange yesterday.

The JV, which includes The Philodrill Corp., Sunda Energy Plc (UK) and Operator Triangle Energy (Global) Ltd. (Australia), was said to be the lone bidder for the two blocks.

The applications “were found to be complete, thus qualifying them for further substantive legal, financial and technical evaluation,” PXP said.

In August, the Department of Energy and the Ministry of Environment, Natural Resources and Energy received three applications for three PDAs during the first BARMM conventional energy bid round.

Aside from BARMM exploration, PXP is also optimistic about the prospects of service contracts in other blocks across the country, including those in the West Philippine Sea (WPS).

PXP operates Service Contract 72 Recto Bank, indirectly through Forum Energy Ltd. (FEL), and directly holds SC 75 northwest Palawan.

Exploration activities in both areas remain suspended due to geopolitical tensions in the disputed waters.

“Both PXP and FEL remain committed in both SC 72 and SC 75 despite the extended force majeure on both blocks. On the other hand, feasibility studies on SC 40’s Dalingding-2 prospect are currently ongoing,” the company said.

Previously, PXP said it would coordinate with the government for potential arrangements in its contract areas in the WPS.

Energy Undersecretary Alessandro Sales earlier told The STAR that the moratorium on energy exploration in the WPS was “still in place,” countering reports that Malacañang lifted the ban.

Notwithstanding this, the company said it would continue to “assess and study other oil and gas projects within the Philippines.”

From January to September, PXP narrowed its core net loss by 25.5 percent to P17.8 million from the same period last year’s P23.9 million.

This was driven by a slight increase in average crude oil price and volume lifted from the Galoc oil field in northwest Palawan that continues to operate profitably despite natural depletion.

Attributable net loss stood at P16.7 million in the nine-month period, down from the P22.9 million recorded in 2023.

Consolidated petroleum revenues, on the other hand, edged 2.8 percent higher to P64.8 million from P63 million on an annual basis.