Manny V. Pangilinan-led PXP Energy significantly cut its losses last year with plug and abandonment costs reduced while waiting for the government’s go-signal for the resumption of exploration activities.

In a statement, the company reported that its consolidated net loss amounted to Php76.3 million, nearly three-fourths less than the Php297 million loss it registered in 2019.

The losses stemmed from continuo

usly declining production from its Service Contract (SC) 14-1C facility, or the Galoc Oil Field in the West Philippine Sea (WPS), aggravated by the COVID-19 pandemic.

Consolidated petroleum revenues also dropped by 58.3% to Php30.3 million from Php72.5 million the previous year with output declining to 750,506 barrels from 993,761 barrels year-on-year.

While revenues fell, consolidated costs and expenses were also but by nearly half or 48.2% to Php98.7 million in 2020 from Galoc.

The company’s general and administrative expenses also went down by 38.6% to Php64.5 million from Php105 million the year prio

r. This was due to a 4.6% decrease in recurring overhead at Php63.6 million from P66.7 million in 2019, as well as a significant reduction in n

on-recurring plug and abandonments costs, which stood at Php0.9 million from Php38.4 million last year.

Pres. Rodrigo Duterte in October 2020 lifted the nearly six-year moratorium on exploration activities in the WPS. As a result, the Department of Energy issued “resume-to-work” notices for Forum (GSEC 101) Limited-controlled SC72 (Recto Bank) and PXP Energy’s SC75 (Northwest Palawan). Both SC areas are located in the WPS, the subject of a highly-contested territorial dispute between the Philippines and China.

PXP Energy indirectly owns

Forum (GSEC 101) Limited.