President Ferdinand Marcos Jr. on Wednesday signed eight new petroleum Service Contracts (PSCs) covering exploration areas across the Sulu Sea, Cagayan, Cebu, Northwest Palawan, East Palawan and Central Luzon.
The Department of Energy said this is the largest batch of PSCs awarded in a single period in Philippine history, reaffirming the administration’s strong resolve to accelerate domestic energy exploration and production.
These eight PSCs represent a potential investment commitment of around $207 million over a seven-year exploration period, signaling the reinvigorated investor confidence in the Philippine upstream energy sector, paving the way for new gas exploration initiatives.
The contracts represent a potential investment commitment of around $207 million over a seven-year exploration period.
PSC Nos. 80 and 81 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 Corp. and The Philodrill Corp.
Co-managed by the DOE and the Ministry of Environment, Natural Resources and Energy of the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM-MENRE), these SCs aim to revitalize petroleum exploration in the southern Sulu Sea, generating new economic and employment opportunities for communities across BARMM and Mindanao.
SC 80 covers about 780,000 hectares, while SC 81 spans about 532,000 hectares. PSC No. 82 located in Cagayan basin and has an area of 480,000 hectares was awarded to Triangle Energy.
PSC Nos. 83 and 84, both for native hydrogen exploration in Central Luzon, were awarded to US firm Koloma Inc.
SC 83 covers 126,645 hectares, while SC 84 covers 85,082 hectares.
PSC No. 85, covering 127,475 hectares in onshore Cebu, was awarded to Gas 2 Grid Pte. Ltd.
PSC No. 86, awarded to consortium of Filipino companies composed of The Philodrill, Anglo Philippine Holdings Corporation, PXP Energy, and Forum Energy Philippines Corporation, covers 132,000 hectares in the Northwest Palawan Basin.
PSC No. 87, located in the East Palawan Basin, was awarded to Israeli firm Ratio Petroleum Ltd.
This marks the company’s second petroleum service contract in the Philippines, following PSC 78, also situated in the East Palawan Basin, where Ratio successfully conducted a 3D seismic survey last year as part of its ongoing exploration activities.
Service contractors may now commence their respective work programs, which will include geological and geophysical studies, seismic surveys and drilling activities as appropriate.
Exploration activities for the contracts will include geological and geophysical surveys such as seismic and aeromagnetic studies to identify drillable prospects, with the potential to discover both native hydrogen reservoirs and new petroleum fields.
Service contractors will also fund and undertake educational scholarships, capacity building and community development programs even during the early exploration phase.
Once production begins, host communities will further benefit through infrastructure development, social programs and local employment opportunities generated by these projects.
Energy Secretary Sharon Garin cited the long-term value of the petroleum contract to national energy security and sustainability.
“These service contracts signify not only our determination to secure new energy sources, but also our readiness to embrace innovation and sustainability while reducing import dependence. From conventional petroleum to native hydrogen, we are expanding the frontiers of Philippine energy exploration,” Garin said.
“This is also about empowering our regions, building local capacity, and creating opportunities for our people. As we work with our partners in both the private sector and the BARMM, we move closer to our vision of a truly energy-secure and inclusive Philippines,” said Garin.
All these contracts have undergone a transparent and competitive selection process under the Philippine Conventional Energy Contracting Program (PCECP), ensuring that exploration rights are granted to legally, financially and technically qualified proponents.
