Oriental Petroleum and Minerals Corporation (OPMC) has exited the Galoc oil field offshore northwest Palawan following the expiration of Service Contract No. 14C-1 (SC 14C-1), drawing a line under its participation in one of the Philippines’ longest-producing petroleum assets.

In a disclosure dated December 19, OPMC said the Department of Energy (DOE)-approved final 15-year extension of Service Contract No. 14 expired on December 17, 2025. OPMC holds a 7.78505% participating interest in SC 14C-1, the sub-block that hosts the Galoc Oil Field.

Galoc, discovered in 1981 and producing since 2008, has yielded an estimated 24.8 million barrels of oil over its lifetime. While early output reached as high as 20,000 barrels per day from two wells, production has steadily declined. As of the contract’s expiration, the field was producing roughly 1,000 barrels per day from the remaining Galoc-5 and Galoc-6 wells.

The expiration comes amid uncertainty over the field’s next phase. In March 2025, SC 14C-1 operator NPG Pty. Ltd. applied for a Development and Production Petroleum Service Contract (DPPSC) to allow continued recovery of remaining reserves. However, OPMC resolved in September not to participate in the DPPSC, a decision acknowledged by the operator and communicated to the DOE later that month.

OPMC said it has not yet been formally advised of the DOE’s or its joint venture partners’ disposition of its non-participation, leaving open questions over ownership alignment should a successor contract be granted.

NPG Pty. Ltd., which holds the majority interest in SC 14C-1, became part of Singapore-based Matahio Energy following Matahio’s acquisition of the operator and the floating production storage and offloading vessel FPSO Intrepid Balanghai, the facility that enables continued production at Galoc. Other participants in the Galoc joint venture include The Philodrill Corporation and Forum Energy Philippines Corp., according to company disclosures.

From a liability standpoint, OPMC said its exposure has effectively been closed. Following DOE approval of a revised decommissioning and plug-and-abandonment plan in August, the decommissioning fund for SC 14C-1 has been fully funded, relieving the company of remaining decommissioning obligations.

OPMC is a publicly listed company led by the Coyiuto and Go families, with significant shareholdings also held by PCD Nominee Corp. and the Social Security System (SSS).

Despite exiting the contract, OPMC remains entitled to its share of the final oil lifting under SC 14C-1, with remittance expected in early 2026 .

The update comes after Philodrill Corporation’s disclosure last week saying it has applied for a new and substantially expanded service contract covering West Linapacan (SC 14C-2) after its previous contract expired on December 17, 2025. The proposed area would increase from roughly 17,700 hectares to 82,000 hectares, aiming to revitalize the historic West Linapacan A field and develop West Linapacan B using modern technology. 

Like Galoc, these blocks are legacy PSC areas in the Northwest Palawan Basin.

Should Galoc’s remaining reserves still justify a DPPSC—and what does OPMC’s exit signal for investor confidence in aging upstream assets? Join the discussion.

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