PXP Energy continues Galoc field operations

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January 7, 2026 | 12:00am

MANILA, Philippines — Tycoon Manuel V. Pangilinan’s PXP Energy Corp. has obtained government approval to continue operating the Galoc oil field off northwest Palawan.

In a stock exchange filing yesterday, PXP said the Galoc field consortium received Petroleum Service Contract 88 from the Department of Energy following the expiration of its previous contract.

SC 88, which covers the former SC 14C-1 Galoc field that expired last Dec. 17, allows the consortium to continue petroleum operations and recover the remaining reserves in the area.

Executed on Dec. 18, the new contract encompasses an offshore area of approximately 83,450 hectares in the northwest Palawan basin.

PXP holds an interest in the Galoc field consortium through its subsidiary Forum Energy Philippines Corp. The consortium also includes The Philodrill Corp. and NPG Pty. Ltd., the contract operator.

At present, the Galoc field yields roughly 1,000 barrels of oil per day from its two remaining wells, Galoc-5 and Galoc-6. Since 2008, the field has produced a total of about 24.8 million barrels of oil.

Although output remains stable, the Galoc field is maturing and experiencing natural depletion.

“However, the execution of SC 88 provides a framework to extend operations and maximize value from remaining resources, subject to technical and commercial considerations,” PXP said.

On Monday, the Department of Energy transmitted the original copy of the new contract to NPG, formally putting the agreement between the government and the consortium into effect.

“Further disclosures will be made should any subsequent developments relating to SC 88 become material,” PXP noted.

Last year, PXP and its partners bagged three petroleum contracts from the government.

These deals cover two exploration contracts in the southern Sulu Sea and one in the northwest Palawan Basin.

“These new contracts reinforce PXP’s strategic upstream position and align with the Philippine government’s efforts to boost domestic energy self-sufficiency,” the upstream oil and gas firm said in an earlier disclosure.