Matahio Philippines awarded first-of-its-kind Service Contract over the Galoc field

Matahio is excited to announce that NPG Pty Ltd, its wholly-owned Philippines vehicle, has been awarded a first-of-its-kind service contract over the Galoc field, for which it will hold 80% participating interest and Operatorship.

The previous Galoc Service Contract, SC# 14, which also included the Nido, Matinloc and West Linapacan fields, was awarded in 1975 under legislation PD 87 and reached its 50-year constitutional limit at the end of 2025. During this 50-year period, SC14 delivered over 65 million barrels of oil, of which 25 million barrels – and counting – have been produced from the Galoc field.

Under PD 87, SC# 14 could not be extended beyond the 50-year expiry despite continuing production from the Galoc field, the only field within SC# 14 currently in production. Therefore, the Philippines Department of Energy (DoE) has now introduced a new Service Contract model – the Development & Production Petroleum Service Contract (DP PSC) - the first of which, named SC# 88, has been awarded to NPG and its Joint Venture Partners to ensure that no Galoc reserves are left stranded and that safe production operations can seamlessly continue under the incumbent Galoc Operator.

Edgar Cutiongco, Matahio’s Philippines Country Manager, said, “Matahio and NPG would like to thank the DoE for its trust and support in the award of SC# 88. We applaud the DoE’s ingenuity in advancing new regulatory models to drive forward the Philippine upstream oil and gas industry in a dynamic environment – these build on the bright Filipino minds who implemented PD 87 back in 1972 and continue a legacy of progress and innovation. We would also like to thank our SC# 88 joint venture partners, Philodrill and Forum, for a long-standing partnership and ongoing collaboration with NPG.”

For the Galoc Field to remain economically viable in production beyond the 50-year constitutional limit is a proud achievement. It is a testament of Matahio’s “every dollar, every barrel” mindset – effective late life reservoir management, innovative cost restructuring, great working relationships with In-Country service providers and a novel life of field partnership with THREE60 Energy to responsibly manage the long-term integrity of our FPSO have altogether resulted in sustainable field life extension.

Looking forward to continuing the Galoc journey.