PXP narrows losses on higher earnings from Galoc field

Tycoon Manuel Pangilinan-led PXP Energy Corp. narrowed its first-semester net loss to P6.3 million from P14.04 million a year ago after raking in more earnings from Galoc oil field.

In a regulatory filing, the listed upstream oil and gas company said it had generated higher profit from Service Contract (SC) 14C-1 Galoc operations.

Six-month consolidated petroleum revenues soared by 130 percent to P45.1 million from P19.6 million in the same period last year. This was as PXP completed two batches of crude extraction totaling 291,216 barrels valued at $97.13 per barrel from Galoc field.

SC 14, located in offshore Northwest Palawan, covers an area of 720 square kilometers. Block C-1 Galoc, as stated on PXP’s website, has an area of 164 sq. km and houses the Galoc oil field development, which commenced production in October 2008.

Meanwhile, consolidated costs and expenses decreased by 13.2 percent to P47.3 million in the first semester from a year ago as PXP incurred higher petroleum production costs in Galoc amounting to P23.6 million.

General and administrative expenses, however, declined by 41.5 percent to P23.7 million.

PXP has committed to pursue exploration work in other projects within the Philippines, except in areas covered by the government’s exploration moratorium.

Assets

Among the oil and gas assets of PXP is the SC 40 North Cebu Block, in which the firm intends to drill one to two onshore wells.

Another is SC 74 in Linapacan, Northwest Palawan, with an area of 4,240 sq. km. PXP has started the independent technical evaluation and resource assessment of the Linapacan A and B fields.

But for SC 72 and SC 75, PXP was forced to shelve exploration plans after the moratorium imposed by the Department of Energy on exploration activities in the West Philippine Sea in April this year.

SC 72 (Recto Bank), which covers the Sampaguita natural gas discovery, is located in the West Philippine Sea, west of Palawan Island and southwest of the Shell-operated Malampaya gas field. It is operated by Forum (GSEC 101) Ltd., a subsidiary of PXP’s unit, Forum Energy Ltd.

SC 75 is situated in Northwest Palawan wherein PXP is the operator.