Matahio Energy has secured a landmark service contract for the producing Galoc field offshore the Philippines, marking a first-of-its-kind arrangement for the country’s offshore sector. Under the contract, the Southeast Asia–focused junior will hold an 80 per cent operated interest, enabling continued production from the mature asset.
The agreement allows Matahio to keep producing Galoc using a floating production, storage and offloading vessel (FPSO), extending the life of one of the Philippines’ few producing offshore oilfields. The move is seen as a pragmatic approach to sustaining output from existing resources while limiting upfront capital exposure.
Industry observers note that the contract structure could serve as a precedent for other late-life offshore assets in the Philippines, where tailored fiscal and operating models may be needed to attract investment. For Matahio, the deal strengthens its regional footprint and provides near-term production and cash flow from a proven field.