The Department of Energy (DOE) has endorsed three more petroleum service contracts (PSCs) to the Office of the President and is evaluating another three for approval, reflecting the strong investor interest in the country’s oil and gas sector.
This follows the signing last week by President Ferdinand Marcos Jr. of eight new PSCs covering exploration areas across the Sulu Sea, Cagayan, Cebu, Northwest Palawan, East Palawan and Central Luzon. The eight awarded PSCs represent a potential investment commitment of around $207 million over a seven-year exploration period.
DOE Undersecretary Alessandro Sales said over the weekend that the department is pleased with the results, noting the strong interest.
Sales said of the three contracts under evaluation at the Office of the President, two are for hydrogen exploration and development, while one is for oil and gas development and production.
The DOE is also evaluating two applications for hydrogen and one for oil and gas at the department level. Officials said the DOE has received continuing interest and queries for hydrogen exploration and development.
It said of the eight PSCs awarded last week, PSC Nos. 83 and 84 were both for native hydrogen exploration in Central Luzon, awarded to US firm Koloma Inc. SC 83 covers 126,645 hectares, while SC 84 covers 85,082 hectares.
PSC Nos. 80 and 81, in the southern Sulu Sea, were awarded to a consortium composed of Australian firm Triangle Energy (Global) Limited; Sunda Energy Plc of the United Kingdom; and local firms PXP Energy Corporation and The Philodrill Corporation.
SC 80 covers about 780,000 hectares, while SC 81 spans about 532,000 hectares. These are co-managed by the DOE and the Ministry of Environment, Natural Resources, and Energy of the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM-MENRE).
PSC No. 82, located in the Cagayan basin with an area of 480,000 hectares, was awarded to Triangle Energy.
PSC No. 85, covering 127,475 hectares in onshore Cebu, was awarded to Gas 2 Grid Pte. Ltd.
PSC No. 86, covering 132,000 hectares in the Northwest Palawan Basin, was awarded to a consortium of Filipino companies composed of The Philodrill, Anglo Philippine Holdings Corporation, PXP Energy and Forum Energy Philippines Corporation.
PSC No. 87, located in the East Palawan Basin, was awarded to Israeli firm Ratio Petroleum Ltd.
Service contractors may now commence their respective work programs, which will include geological and geophysical studies, seismic surveys and drilling activities as appropriate.
