How to Diagonalize an Extremely Large Sparse Matrix in SLEPc/PETSc

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Dear Friends, Recently I have started with learning SLEPc/PETSc, but I didn't find a way to solve my problem. I have to solve a big sparse matrix which is a two dimensional quantum hamiltonian given as $\bf{H=\frac{p_{x}^2}{2}+\frac{p_{y}^2}{2}+\frac{x^2}{2}+\frac{y^2}{2}+\lambda(x^{2}y^{2})}$ which is a perturbed two dimensional hamiltonian. Now I have to diagonalize this hamiltonian in parallel. I dont know how to generate several portions of this matrix in each node and perform the computation in PETSc. Can any body suggest me, how to solve this problem with a matrix size of 500^2 X 500^2 ? Here 500 is the basis size of single particle mode. I already have tried with Matlab, but 150^2 by 150^2 is the maximum size that I can do with Matlab parallel computing toolbox with 8 workers.