PXP Energy Raises Funding Drive To Support New Oil And Gas Service Contracts
- August 8, 2026
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PXP Energy Corp. is looking to raise fresh capital and bring in foreign partners to support an expanded petroleum exploration program following the award of several new government service contracts. This comes as the listed upstream energy company navigates weaker earnings and explores emerging opportunities such as native hydrogen.
PXP Chairman Manuel V. Pangilinan said the company is seeking investors to help finance exploration activities that are expected to take years before yielding commercial production.
“We have to raise money for PXP for the various service contracts,” Pangilinan said, adding that the company has invited Chinese firms to participate through farm-in arrangements in petroleum service contracts located within undisputed Philippine territory.
The fundraising effort comes as PXP expands its exploration portfolio while pursuing the country’s long-term goal of improving energy security through indigenous resources.
Expanding Exploration
PXP and its consortium partners secured Petroleum Service Contract (SC) No. 91 in April, granting the group the right to continue exploration and production activities in the Cadlao Oil Field in the Northwest Palawan Basin.
The 10-year contract covers approximately 103,034 hectares and replaces the former SC 6B, which expired in February 2024. It encompasses an expanded portion of the Cadlao Field, which produced about 11.2 million barrels of oil between 1981 and 1991 and is estimated to contain 2C contingent resources of 6.2 million barrels.
The consortium includes PXP subsidiary Forum Energy Philippines Corp., Nido Petroleum Philippines Pty. Ltd., The Philodrill Corp., Oriental Petroleum and Minerals Corp., and Alcorn Petroleum and Minerals Corp.
The company also secured SC 88, allowing continued production at the Galoc Oil Field in northwest Palawan. PXP said Galoc has produced more than 25 million barrels of oil since commercial operations began in October 2008 and remains commercially viable despite the natural decline in production.
Last year, the Department of Energy also awarded the company and its partners three additional petroleum service contracts covering SC 80 and SC 81 in the Sulu Sea, as well as SC 86, which covers the Octon Block in northwest Palawan adjacent to existing producing oil fields.
The Sulu Sea contracts are jointly administered by the Department of Energy and the Bangsamoro Autonomous Region in Muslim Mindanao through its Ministry of Environment, Natural Resources, and Energy.
Seismic Work
PXP said exploration activities have begun under SC 80 and SC 81 through operator Tetragon Energy Ltd.
The consortium recently awarded a $1.45-million contract to DUG Technology Ltd. to reprocess more than 4,000 square kilometers of existing three-dimensional seismic data and up to 3,000 line-kilometers of two-dimensional seismic data to better assess the hydrocarbon potential of the service contract areas. Initial fast-track seismic results are expected within six months.
Despite the expansion of its exploration acreage, Pangilinan acknowledged that commercial production from the new service contracts remains a long-term prospect.
“Any prospect of getting oil and gas from these service contracts is many years of exploration to production. It’s not going to be a very quick solution,” he said.
He added that continued exploration remains important as the country seeks greater energy independence through the development of indigenous energy resources.
Financial Pressure
The company’s renewed exploration push comes as PXP reported a wider core net loss of ₱25.7 million in the first half of the year, compared with a ₱21.1-million loss in the same period last year.
Petroleum revenues fell 36 percent to ₱21.2 million after production volumes dropped by 44.1 percent, with the company recording only one crude lifting totaling 156,983 barrels during the period, compared with two liftings totaling 280,742 barrels a year earlier.
Lower global crude prices also weighed on earnings, with the effective average selling price declining to $62.90 per barrel from $70.74 per barrel in the previous year.
At the same time, net financing costs climbed to ₱10.3 million from ₱2.1 million due to higher interest expenses and foreign exchange losses resulting from the depreciation of the peso against the US dollar on foreign currency-denominated loans.
Partly offsetting the decline were lower petroleum production costs, which fell in line with reduced sales volumes, as well as slightly lower administrative expenses.
As production from the Galoc field approaches the end of its operational life, PXP said it remains focused on maintaining capital discipline, refining its portfolio strategy and pursuing opportunities that could generate earlier cash flows. The company also continues to hold interests in SC 72 and SC 75, both of which remain under force majeure.
Hydrogen Interest
Beyond conventional oil and gas, Pangilinan said PXP is also considering opportunities in native hydrogen exploration.
Native hydrogen refers to naturally occurring hydrogen deposits found underground and has gained attention globally as a potential low-carbon energy resource.
The Philippine government has so far awarded three natural hydrogen service contracts, all to US-based Koloma Inc.
While still evaluating the emerging sector, Pangilinan said PXP remains committed to expanding exploration activities that could contribute to the country’s long-term energy security through the development of domestic energy resources.
Source:
https://mb.com.ph/2026/08/04/pxp-energy-loss-widens-as-lower-oil-prices-production-hit-top-line
https://business.inquirer.net/603736/pxp-energy-also-keen-on-native-hydrogen