PXP Energy Corp. said its indirect subsidiary has secured the formal effectivity of a new petroleum contract covering a prospective offshore block in Palawan, marking a step forward in its upstream portfolio.
PXP said in a disclosure that the Department of Energy has transmitted the executed Petroleum Service Contract (SC) No. 91 to the project operator, signaling the contract’s official implementation.
SC 91, signed on April 13, 2026, between the Philippine government and a consortium led by Nido Petroleum Philippines Pty. Ltd., covers an offshore area of about 103,034 hectares in the Northwest Palawan Basin. Other consortium members include The Philodrill Corp., Oriental Petroleum and Minerals Corp., Alcorn Petroleum and Minerals Corp., and Forum Energy Philippines Corp. (FEPCO), PXP’s indirect unit.
The award effectively revives and expands the former SC 6B block, which expired in February 2024, and includes the Cadlao Oil Field—an asset with historical production of about 11.2 million barrels between 1981 and 1991.
Exploration data suggests renewed potential in the area. A 3D seismic survey conducted in 1996 indicated that earlier wells may have bypassed a significant volume of “attic oil,” the highest part of the drilled structure. This remaining resource, which may require special recovery methods such as gas injection, has since been identified as a key target for possible field redevelopment under the new contract.
FEPCO, a wholly owned subsidiary of Forum Energy Ltd. in which PXP holds an effective 98.08 percent interest, has a 2.4546 percent participating stake in SC 91 and will be free-carried through to first oil, reducing its upfront capital exposure.
PXP said it will issue further disclosures as developments related to SC 91 become material.
