The Department of Energy (DOE) has completed the transmission of the executed Petroleum Service Contract (SC) 88, formally allowing petroleum operations to continue in the Galoc field area off Northwest Palawan.

SC 88 replaces the expired SC 14C-1, which lapsed on December 17, 2025, and provides a regulatory framework for extending operations and optimizing the recovery of remaining reserves in the Galoc field.

The service contract was executed on December 18, 2025 between the Republic of the Philippines and a consortium composed of NPG Pty. Ltd. as operator, The Philodrill Corporation, and Forum Energy Philippines Corporation (FEPCO), a subsidiary of PXP Energy Corporation.

According to disclosures, the contract was signed by President Ferdinand “Bongbong” R. Marcos Jr. on December 18, following its evaluation by the DOE. The department transmitted the original copy of the executed contract to the operator on January 5, 2026, signifying the formal effectivity of SC 88 for safekeeping and implementation.

The contract covers an offshore area of approximately 83,450 hectares in the Northwest Palawan Basin, which includes the former Galoc oil field. The companies involved have previously noted that Galoc is a mature and depleting field.

PXP Energy said the execution of SC 88 provides a framework to extend operations and maximize remaining value from the area, subject to technical and commercial considerations. It added that further disclosures will be made should subsequent developments become material.

The SEC filing also noted that the application for SC 88 was submitted in July 2025 and underwent evaluation in accordance with DOE regulations, with the contract signing ensuring uninterrupted production operations at the Galoc field. 

How should the Philippines balance continued production from mature oil fields with its broader energy transition goals?

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