PXP Energy Corporation

PXP Energy Corporation: 50%

SC 75, formerly Area 4 under the Fourth Philippine Energy Contracting Round (PECR 4), was signed on December 27, 2013 with a 7-year term divided into 5 sub-phases.

The work commitment for Sub-Phase 1, which ended on December 27, 2015 had been fulfilled. The exploration activities completed under the first sub-phase include simultaneous acquisition of 2,235 line-kilometers of 2D seismic, gravity, and magnetic data over the block from March to April 2014. In addition, the consortium also participated in a NW Palawan regional satellite gravity data interpretation project together with other operators.

Processing and interpretation of the 2014 gravity and magnetic data was completed in February 2015. Seismic data was processed using broadband techniques and was completed in April 2015. G&G studies, including 2D seismic interpretation, were completed in July 2015.

SC 75 was placed under force majeure since 27 December 2015 due to the West Philippine Sea maritime dispute.

On October 14, 2020, the DOE lifted the force majeure over SC 75. PXP then proceeded to plan for the work commitment under the second sub-phase, which includes the acquisition of at least 1,000 square kilometers of 3D seismic data. In early April 2022, the seismic vessel arrived onsite to commence the acquisition work, however, PXP received a directive from the DOE to “put on hold any exploration activities for Service Contract Nos. 72 and 75 until such time that the [Security, Justice and Peace Coordinating Cluster (SJPCC)] has issued the necessary clearance to proceed.” PXP immediately complied with the directive by notifying its contractors on the suspension of activities. PXP is awaiting the decision of the DOE as to the lifting of the suspension order in order to resume its exploration work. In the meantime, SC 75 had to be placed under force majeure again effective April 6, 2022.