Oil and gas exploration company PXP Energy Corp. reported a wider net loss for the first quarter of 2025, with losses ballooning to ₱9.2 million, a significant increase from ₱2.6 million in the same period last year. The company attributed the decline to weaker production volumes and lower crude oil prices from its flagship Galoc field operations near Palawan.
In a statement released Thursday, PXP Energy reported consolidated petroleum revenue dropping 22.4 percent to ₱20.4 million, down from ₱26.3 million in the previous year. The downturn was driven by a 20 percent drop in crude oil volume sold, which fell to 157,381 barrels from 196,826 barrels, coupled with a 5 percent decline in average crude price, now at USD76.3 per barrel compared to USD80 per barrel.
The Galoc underperformance, operated under Service Contract (SC) 14C-1, underscores the broader challenges facing domestic upstream energy players as they navigate volatile commodity prices and maturing assets.
Despite the financial setback, PXP Energy emphasized its ongoing strategic initiatives, including the assessment of the onshore Dalingding prospect under SC 40 in northern Cebu. The company signaled continued interest in expanding its footprint in the Philippines’ upstream energy sector, noting that joint venture partners are anticipating the awarding of two pre-determined exploration areas in the southwestern portion of the Sulu Sea basin.
Meanwhile, progress on key offshore assets remains stalled. PXP continues to await government clearance to resume operations in SCs 75 and 72, which have been under force majeure since April 2022 due to geopolitical tensions with China. SC 75, located in Northwest Palawan, is 50% owned by PXP, while SC 72 is operated by Forum Energy Ltd., where PXP holds a 79.13% direct and indirect interest.
With exploration ambitions tempered by regulatory and territorial uncertainties, the company’s focus appears increasingly split between revitalizing near-term prospects and navigating complex offshore geopolitics.
