PXP Energy Corp. is moving closer to a potential return to oil production in the Northwest Palawan Basin after the execution of Petroleum Service Contract (SC) 91, a development that reopens a previously producing asset and sharpens focus on near-term redevelopment prospects. 

“SC 91 was executed on April 13, 2026, between the Republic of the Philippines and the consortium composed of Nido Petroleum Philippines Pty. Ltd. (Operator), The Philodrill Corporation, Oriental Petroleum and Minerals Corporation, Alcorn Petroleum and Minerals Corporation, and FEPCO,” PXP said in a disclosure today.

The Department of Energy has since transmitted the executed contract, marking its formal effectivity and clearing the way for project implementation. 

SC 91 covers the former SC 6B area, including the Cadiao Oil Field, which produced approximately 11.2 million barrels of oil from 1981 to 1991. 

“In 1996, 3D seismic data acquired over the field indicated that the original wells had bypassed a significant volume of attic oil updip of the structurally highest well. This remaining attic oil has since been identified as a key target for potential field redevelopment,” PXP said.

The redevelopment of Cadiao and adjacent prospects could serve as a test case for how legacy fields can be reactivated to contribute incremental domestic supply—an increasingly relevant pathway as the Philippines seeks to balance energy security concerns with limited new discoveries.

For PXP, the next phase hinges on translating this identified resource into production. Its subsidiary, Forum Energy Philippines Corp. (FEPCO), holds a 2.4546% participating interest in SC 91 and is “free-carried up to first oil,” allowing exposure to early output with limited upfront capital. 

Can redeveloping legacy fields like Cadiao meaningfully boost domestic oil output? Join the discussion.

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