PXP Energy Seeks Foreign Partners for Domestic Oil and Gas Exploration

MANILA, Philippines — PXP Energy Corp. is actively seeking foreign investment to pursue new upstream oil and gas opportunities beyond areas currently under an exploration ban in the West Philippine Sea. "We have to raise money for PXP for the various service contracts, so we're inviting foreign partners to join us," said PXP chairman Manuel V. Pangilinan in a chance interview. He indicated that the company has reached out to Chinese firms for capital and support in exploring areas that fall within Philippine jurisdiction and are free from territorial disputes. PXP's core assets, Service Contract 72 (Recto Bank) and SC 75 (Northwest Palawan), remain under force majeure due to ongoing geopolitical tensions in the West Philippine Sea. Despite these challenges, Pangilinan expressed confidence in the long-term potential of these assets, while PXP continues to pursue other government-awarded petroleum deals across the country. "In the long run, I think we should do it. Because if you want energy independence, it's best to have indigenous fuel (sources) like solar and wind," he stated. Last year, through its joint venture partnerships, PXP was awarded SCs 80 and 81, marking the first petroleum deals granted within the Bangsamoro Autonomous Region in Muslim Mindanao. SC 80 covers 780,000 hectares and hosts gas discoveries previously explored by ExxonMobil, while SC 81 spans 532,083 hectares with several wells showing potential oil and gas prospects. These blocks are located in the underexplored Sulu Sea. PXP, along with its partners, also secured SC 86, encompassing around 132,000 hectares in the Malajon area of northwest Palawan. Pangilinan noted that any oil and gas prospects from these contracts would take years of exploration before reaching production. When asked about interest in exploring for native hydrogen, he replied, "Yes." The government has integrated native hydrogen exploration into the petroleum service contract system to provide a clearer regulatory framework for investors. Native hydrogen is a naturally occurring resource found beneath the Earth's surface, distinct from conventionally produced hydrogen.