MVP-led PXP Energy trims 2021 net loss

PXP Energy Corp. was able to trim its net loss to P32.5 million last year from P45.9 million the year prior as its partnership in Peru for an oil and gas exploration fizzled out.

The Manuel Pangilinan-led upstream petroleum firm said in a statement that this was due to a P1.66-billion full write-down of the carrying value of oil and gas assets related to Peru block Z-38.

Consolidated petroleum revenues in 2020 went up by 112 percent to P64.2 million from P30.3 million in 2019. This was partly attributed to a 75-percent surge in the sale price of Galoc crude, which reached $69.58 per barrel during the period from $38.18 per barrel previously.

Lower Galoc output

This gain was offset by a 16-percent reduction in output at the Galoc field.

Meanwhile, consolidated costs and expenses rose by 4 percent to P102.7 million from the 2020 level of P98.7 million due to higher petroleum production costs in Galoc. General and administrative expenses, however, were marginally lower at P62.1 million from P64.5 million.

It was in September last year when PXP Energy’s subsidiary Pitkin Petroleum Ltd.—where it has a 53.43-percent stake—along with its wholly owned subsidiary Pitkin Petroleum Peru Z-38 SRL entered into a settlement with partner KEI (Peru Z-38) Pty Ltd. and its wholly owned branch KEI (Peru Z-38) Pty Ltd. Sucursal del Peru. The last two are part of the Australia-based Karoon Energy group.

KEI paid $9.6 million to Pitkin Peru in full and final settlement of all claims by Pitkin Peru and its associates in connection with Block Z-38.

KEI had not pursued further drilling in the area which resulted in the voiding of their offshore petroleum concession in July.

With this, PXP Energy said it will maintain its focus on its service contract in the Northeast Palawan.