The government has issued a new petroleum service contract for the Galoc oil field in northwest Palawan to allow a consortium to recover remaining reserves at the site.
PXP Energy Corp. said in a disclosure to the Philippine Stock Exchange Tuesday its subsidiary Forum Energy Philippines Corp. (FEPCO) received a copy of Service Contract (SC) 88 signed by President Ferdinand Marcos Jr.
The new contract covers the former SC 14C-1 Galoc field, which expired on Dec. 17 2025, and permits the consortium to continue operations and optimize recovery over a 4-year period.
The agreement was executed on Dec. 18, 2025 between the government and a consortium composed of operator NPG Pty. Ltd., The Philodrill Corp. and FEPCO. The contract area spans about 83,450 hectares in the Northwest Palawan Basin.
PXP Energy said a Department of Energy transmittal dated Jan. 5, 2026 signifies the formal effectivity of the contract. While the company noted that Galoc is a mature and depleting field, it said SC 88 provides a framework to extend operations and maximize value from remaining resources subject to technical and commercial considerations.
The Galoc field produces from two remaining wells, Galoc-5 and Galoc-6, at 1,000 barrels of oil per day. The field has reached an estimated cumulative production of 24.8 million barrels since 2008.
Production at the site was bolstered in Dec. 2013 by the drilling of the 5 and 6 wells. However, the Galoc-3 well ceased production in 2022 due to declining rates and the Galoc-4 well has remained shut-in since 2019 because of fluid-lifting constraints.
PXP Energy Corp. is an upstream oil and gas firm led by chairman Manuel Pangilinan. The company is incorporated in the Philippines and listed on the local stock exchange.
