Patience will be paramount as Pangilinan-led PXP Energy Corp. embarks on upstream oil and gas exploration, a process expected to advance slowly and require substantial capital, the company’s chairman said.

Tycoon Manuel V. Pangilinan, who also chairs PXP, told reporters that the recently awarded service contracts (SCs), while still in the early exploration stage, would eventually necessitate substantial investment.

The initial funding for the granted exploration works is “very small,” the tycoon noted. “It’s around several million dollars,” he said, without specifying the peso equivalent or an exact figure.

Last month, PXP announced it was awaiting government approval for two new exploratory grants, following the Department of Energy’s (DOE) award of SC 80, 81, and 86. These approvals will allow PXP to expand activities in the Sulu Sea and the Octon Block in Northwest Palawan.

“That’s a long process... We’re slowly learning about the business of oil exploration and development. It’s a very complex business,” Pangilinan said.

SC 80 and SC 81 are jointly administered by the DOE and the Ministry of Environment, Natural Resources, and Energy of the Bangsamoro Autonomous Region in Muslim Mindanao.

“Long term, it requires a lot of money,” he added, noting that oil and gas expeditions are usually the domain of larger international oil companies.

The Southern Sulu Sea exploration was awarded to a consortium composed of Australia’s Triangle Energy (Global) Limited, the UK’s Sunda Energy Plc, PXP Energy, and local company Philodrill Corp.

The Northwest Palawan basin contract was awarded to a different PXP consortium, comprising Philodrill, Anglo Philippines Holdings Corp., and Forum Energy Philippines Corp.

President Ferdinand Marcos signed these contracts in October. The DOE underscored that the companies would study the availability of petroleum and hydrogen sources while strictly adhering to environmental and safety standards.

The permits were secured through a competitive selection process (CSP) under the Philippine Conventional Energy Contracting Program (PCECP) to ensure the expeditions are legally, financially, and technically qualified.

The two remaining exploration works are pending government approval.