Tycoon Manuel V. Pangilinan is optimistic about PXP Energy Corp.’s oil and gas prospects after clinching three new exploration deals in the Sulu Sea and the Palawan basin.
‘These new projects expand our exploration presence in the Sulu Sea, an area with a proven exploration history and promising untapped potential, and strengthen PXP’s presence in the highly prolific northwest Palawan basin,’ said Pangilinan, who chairs PXP.
This comes after President Marcos awarded petroleum service contracts (SC) 80 and 81 to PXP and its partners The Philodrill Corp., Australia’s Triangle Energy (Global) Ltd. and United Kingdom’s Sunda Energy Plc.
SC 80 spans 780,000 hectares and includes the Dabakan and Palendag gas discoveries previously drilled by ExxonMobil, while SC 81 covers 532,083 hectares and contains several wells with recorded oil and gas shows.
These contracts are envisioned to provide economic benefits to communities across the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).
Similarly, PXP and its partners Philodrill, Anglo Philippine Holdings Corp. and Forum Energy Philippines Corp. bagged SC 86, encompassing around 132,000 hectares in the Malajon area of northwest Palawan.
‘The signing of SCs 80 and 81 in the Sulu Sea, along with SC 86 in Northwest Palawan, marks a significant step forward for both PXP and the Philippine energy sector,’ Pangilinan said.
The PXP chairman also affirmed the company’s commitment to supporting the government in boosting local energy production and cutting the country’s oil import dependence.
‘In close coordination with the DOE (Department of Energy), BARMM and our industry partners, we aim to contribute meaningfully to the nation’s long-term energy security and sustainability,’ Pangilinan added.
Just last week, PXP shares were trading as low as P2 each.
But after securing new contracts, its share price soared by 19.01 percent to P3.38 yesterday from Wednesday’s close of P2.84. This marks a staggering 64.87 percent rally over just two trading days.
The new contracts awarded to PXP were among the eight petroleum exploration deals unveiled by Malacañang following the 2024 Philippine bid round and the first BARMM conventional energy auction.
Collectively, the contracts would require a potential investment of around $207 million over a seven-year exploratory period, the DOE said.