PXP Energy Corp. is waiting for the Department of Energy’s (DOE) approval on three service contracts (SC) for oil and petroleum resources.
“We eagerly await the approval of three new service contracts in Northwest Palawan, Sulu Sea and Recto Bank areas. These contract areas will play an important role in revitalizing our petroleum operations and diversifying our asset portfolio,” said Daniel Stephen Carlos, PXP Energy president, during the company’s annual stockholders meeting conducted virtually yesterday.
Carlos said the SC in Northwest Palawan covers the area that was formerly part of SC 6A plus an additional location to its east.
Meanwhile, PXP Energy said the applied SC in Recto Bank is planned to undergo a new 2D seismic data as well as marine gravity and magnetic data, while the one eyed in the Sulu Sea which was offered by the DOE through a bidding in 2019 will need a reprocessing of its 3D seismic data.
According to Carlos, the company is preparing for the drilling of an oil well in Palawan by the first quarter of next year under SC6-B Bonita block.
“The initial phase will include the drilling of a well, Cadlao 4, to be followed by an extended well test (EWT). Based on the EWT results, a decision regarding full-field development including the drilling of additional production wells will be made. However, due to the current tight rig market, the drilling has been deferred from its original schedule this second quarter and instead, we anticipate drilling to start within the first quarter of 2024,” Carlos said.
PXP Energy also acknowledged that the ongoing maritime dispute in the Wes Philippine Sea presents a “significant hindrance” to some of its SCs.
“Nonetheless, we are currently engaged in active discussions with the government to explore the most effective approach for establishing the commercial viability of hydro-carbon resources within the contract area. Despite the challenges, we maintain a hopeful outlook that the moratorium on our two SCs will be lifted soon, enabling the resumption of exploration activities,” Carlos said.
PXP Energy holds a 50 percent interest in SC 75 located in Northwest Palawan while Forum Energy Ltd., where PXP holds a direct and indirect interest of 79.13 percent, has a 70 percent participating interest in SC 72, also located in Northwest Palawan.
