PXP Energy losses down 56% in Jan-September

PXP Energy Corp. saw its net loss for the January-September period shrink by 56 percent year-on-year to P21.8 million amid the lingering moratorium on petroleum exploration at Recto Bank.

The MVP group company’s consolidated petroleum revenues were 52 percent lower at P51.1 million this year from P106.1 million previously.

This was attributed to a 36-percent drop in output and 13.6-percent fall in crude oil prices at its Galoc production field as well as the plugging and abandonment of its Nido and Matinloc production wells.

On the other hand, the shutdown in Nido and Matinloc as well as lower depletion cost in Galoc pushed down expenses by 46 percent to P94.2 million from P173.7 million.

These factors helped trim down consolidated net loss from P49.1 million in the first nine months of 2018.

Even with the pending PXP call for the government to lift the moratorium on activities at Recto Bank, where there is a potential source of natural gas comparable to Malampaya, the company earlier this week submitted to the Department of Energy an unsolicited proposal for the strategic development and use of an “Integrated Gas Hub” in Malampaya.

Under the proposal, the Malampaya infrastructure and distribution network is envisioned to support the continued development of the Malampaya resources as well as the economic development of Sampaguita Field and other nearby prospects at Recto Bank.

The integrated project is intended to ensure energy security in the Philippines with indigenous natural gas resources for the next 25 years.

“In the meantime, PXP has expressed an interest to acquire the 45-percent ownership of Chevron Malampaya LLC in Service Contract No. 38 through the right to match of the other SC 38 consortium members,” the company said.