Almost 50 years ago, in November 1973, the Philippine National Oil Company (PNOC) was created in the midst of the 1973 oil price shock. Born out of the oil crisis, it was able to grow its family of companies and expand its coverage from upstream and downstream oil and gas to other forms of energy such as coal, geothermal and other alternative and renewable energies.

PNOC Exploration Corporation (PNOC EC) was among the early subsidiaries, plucked from a former department of PNOC. Created in 1976, PNOC EC was mandated by the Government to pursue upstream oil and gas and catalyse the industry in further exploring the country. At that time when the interest of the oil and gas players have been taken by several petroleum discoveries in offshore Palawan, PNOC EC has taken the cudgels in keeping the fires burning in the E&P of onshore basins.

In recent times, PNOC EC’s mandate became more corporate, and its coverage limited to its existing acreage. Out of the sixteen (16) sedimentary basins, PNOC EC’s current presence had been focused only in two offshore basins in West Palawan and one onshore basin in Cagayan. PNOC EC has substantial acreage in the most prospective offshore areas, and along with its partners, are taking steps to advance their E&P programs. In its onshore block, PNOC EC was able to commercialize a marginal gas field fuelling the first gas-fired power plant in the country. A recent gas discovery will be further assessed for potential commercialization while a new prospect is being considered for drilling by early 2024.

There is a looming energy crisis in the horizon for the Philippines. The Malampaya gas field, its lone giant accumulation, is already on the decline and may not be able to fill the gas demand by 2027. Then there’s the energy transition. While PNOC EC is expected to find the replacement reserves, it is faced with the dilemma of pursuing two different paths i.e., following the program of Net Zero by 2050 (an energy economy dominated by renewables) and continuing E&P programs for fossil fuels. The country is still considered largely under-explored for oil and gas. However, petroleum E&P programs have long gestation period and therefore must also consider the long-term direction of the Government. Navigating the energy transition will be a balancing act for PNOC EC, one that may dictate if it will be celebrating 50 years, just like SEAPEX.