Pangilinan affirms commitment to PXP exploration
Manuel V. Pangilinan expects to pour in “several million dollars” as PXP Energy Corp. prepares to pursue exploration activities under newly-awarded petroleum service contracts.
Popularly known as MVP, Pangilinan, who chairs PXP Energy, said the company was still in the early stages of preparing its work programs following the government’s award of the exploration areas—part of the country’s biggest batch of contracts issued to date.
In October, the government granted eight new petroleum service contracts, projecting around $207 million in investment commitments from the deals. The contracts cover areas in the Sulu Sea, Cagayan, Cebu, Northwest Palawan, East Palawan and Central Luzon.
Asked about the cost of the new projects, Pangilinan said it would be “very small,” amounting to “several million dollars.”
The company holds three service contracts and is awaiting two more, according to MVP.
While optimistic, he cautioned that exploration work would take time.
“That’s a long process,” he said, adding that securing additional areas would also take time. “… We have to be patient,” he added.
He emphasized that oil exploration involves extended timelines and significant capital.
“We have to see many years for this. It’s gonna be a long process and probably complicated,” Pangilinan said.
“We’re slowly learning about the business of oil exploration and development. It’s a very complex business. Long term, it requires a lot of money. It’s really for the big boys. We’re too small for them. But we do our bit in terms of oil exploration,” he added.
The Department of Energy (DOE) said the seven-year exploration programs would involve geological and geophysical studies, including seismic and aeromagnetic surveys, as the country seeks new petroleum prospects and potential hydrogen reservoirs.
PXP Energy is among the companies granted exploration rights in what the DOE called the “largest batch” of service contracts issued by the Philippines.
