PXP Energy Corporation, an upstream petroleum company chaired by business tycoon Manuel V. Pangilinan, will be renewing its coordination with the government on its plan to resume oil and gas exploration activities within offshore Palawan basin -- including that of the diplomatically-saddled Recto Bank.
The company said it is targeting to re-commence seismic survey as well as planned well drilling programs at its petroleum blocks covered by Service Contract 72 (Recto Bank) at the West Philippine Sea; and Service Contract 75 which straddles Northwest Palawan basin.
“PXP and Forum will continue to coordinate with the government on the resumption of activities in both SC 75 and SC 72,” PXP Energy emphasized.
Forum Energy, in particular, is the corporate vehicle of the Pangilinan group that has been pushing for oil and gas exploration venture at Recto Bank, a prospect that is seen to have potential for commercial gas discovery that can match or even surpass the scale of production of the Malampaya field.
Further, the Pangilinan-led firm indicated plans to “continue to pursue exploration work with respect to its other projects in the Philippines ,” including Service Contract 40 which is in the Visayan basin; as well as SC 74 which is in the shallow waters of Northwest Palawan region.
Of the various petroleum exploration blocks being targeted by the Pangilinan group, considered to be of prime interest is that of Recto Bank - because of indication of potential massive scale gas discovery.
The company, nevertheless, qualified that the commercial find probabilities being shown in initial seismic data can only be confirmed via tangible results yielded in actual well drilling that shall be pursued at the awarded block.
Early this year, PXP Energy resorted to force majeure declaration on its scheduled extended seismic and drilling activities at its petroleum blocks because of the unilateral suspension of exploration works enforced by the government following the maneuvers orchestrated by China at the West Philippine Sea.
It did not even help that the Duterte administration already lifted in October 2020 the moratorium on oil and gas exploration at the WPS-disputed areas.
Under the new government leadership, however, Energy Secretary Raphael Perpetuo Lotilla already sounded off the Marcos administration’s desire to entice more investments in petroleum exploration and production (E&P) so the country can reinforce its energy security agenda.