PXP Energy Corp. expects the government to award two additional service contracts in the prolific Northwest Palawan Basin within the next few months, the company said in a disclosure to the stock exchange on Thursday.
The two service contracts, covering the Galoc and Cadlao oil fields, are under final review by the government. PXP and Forum Energy hold minority stakes in both.
The Galoc service contract (SC 14 Block C-1) is set to expire in December 2025. PXP, through Forum Energy Philippines Corp., holds a 3.2103-percent stake. The joint venture filed an application for a Development and Production Petroleum Service Contract (DP PSC) in March 2025 to allow for continued production.
“With Galoc production approaching the end of field life, the company is also exploring opportunities to reinvest in producing or near-term development fields that could generate earlier cash flow, all while maintaining a clear focus on its upstream business,” the company said.
The Cadlao Field is under Service Contract 6B, which expired on Feb. 28, 2024. A joint venture led by Nido Petroleum submitted a DP PSC application in January 2024 to succeed SC 6B.
The potential awards would follow the recent conferment of three other service contracts. On Oct. 8, 2025, the Department of Energy (DOE) awarded PXP and its joint venture partners SC 80 and SC 81 in the Sulu Sea, and SC 86 (Octon Block) in Northwest Palawan.
PXP said these three newly-awarded contracts reinforce its strategic upstream position and align with the government’s efforts to boost domestic energy self-sufficiency.
The Sulu Sea blocks (SC 80 and SC 81) are jointly administered by the DOE and the Bangsamoro Autonomous Region in Muslim Mindanao through its Ministry of Environment, Natural Resources and Energy. SC 86, the Octon Block, is in Northwest Palawan, adjacent to established producing oil fields.
The company said it remains focused on preserving liquidity and maintaining operational readiness while progressing early-phase technical assessments for the new blocks.
PXP and Forum Energy Limited said they remain steadfast in their commitment to the long-term potential of the strategically important West Philippine Sea assets, despite the continuing force majeure over SC 72 and SC 75.
