PXP to drill new oil well by 1Q of 2024

PXP Energy

PXP Energy Corporation, led by Manny V. Pangilinan, is looking to begin drilling an oil well in Palawan during the first quarter of 2024.

In a report by the Business World, PXP Energy president, Stephen P. Carlos, noted that while the company had initially planned to begin drilling this year, it has been postponed until the first quarter of 2024 due to a “tight rig market.” 

PXP Energy Corporation is also awaiting the approval of three pending service contracts (SC) for oil and petroleum resources from the Department of Energy (DOE). These contracts in Northwest Palawan, Sulu Sea, and Recto Bank areas hold “great potential for revitalizing our operations and expanding our asset portfolio,” Carlos said. 

Carlos emphasized that two additional service contract applications are awaiting DOE approval. The first application pertains to an area adjacent to Service Contract (SC) 72, and upon contract award, the company intends to acquire new 2D seismic data for the specified location.

Within SC 72, which encompasses the Recto Bank, lies the Sampaguita gas discovery. This significant find is estimated to hold approximately 2.6 trillion cubic feet of contingent gas resources.

In March 2021, SC 6A, a 1,080 square kilometers area which also contains the Octon field was surrendered to DOE as its term contract is about to expire in February 2022. 

Carlos also highlighted that this granted the company a narrow window to conduct exploratory drilling and field development. Additionally, he mentioned that both PXP Energy and its subsidiary, Forum (GSEC 101) Ltd., are actively engaged in an SC application, which aims to cover the previous SC 6-A.