Pangilinan-led PXP Energy Corp. is set for a slow and capital-intensive path in upstream oil and gas exploration, its chairman, Manuel V. Pangilinan, said, emphasizing the need for patience as the company ramps up activities.

“It’s a long process. So we have to be patient. We’re still learning about oil exploration and development. It’s really for the big boys, it’s way too small for them,” Pangilinan told reporters this week.

The tycoon did not disclose the amount of initial funding for the company’s newly awarded service contracts (SCs), but noted that it is relatively modest. “Very small. Around several million dollars,” he said, adding that substantial investment would be required in the long term.

Last month, PXP announced it was awaiting government approval for two additional exploratory grants, following the Department of Energy’s (DOE) earlier awards of SC 80, 81, and 86. Once approved, these projects will expand PXP’s activities in the Sulu Sea and the Octon Block in Northwest Palawan.

SC 80 and SC 81 are jointly administered by the DOE and the Ministry of Environment, Natural Resources, and Energy of the Bangsamoro Autonomous Region in Muslim Mindanao. 

The Southern Sulu Sea exploration involves a consortium of Triangle Energy (Global) Limited of Australia, UK-based Sunda Energy Plc, PXP Energy, and local partner Philodrill Corp. Meanwhile, the Northwest Palawan basin project is a different consortium comprising Philodrill, Anglo Philippines Holdings Corp., and Forum Energy Philippines Corp.

President Ferdinand Marcos signed the contracts in October, and the DOE has stressed that all exploration activities must strictly follow environmental and safety regulations. The permits were secured through the Philippine Conventional Energy Contracting Program’s competitive selection process, designed to ensure that participating companies are legally, financially, and technically capable of undertaking the projects

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