The Philippines has launched eight new petroleum service contracts (PSCs) for oil and gas exploration across Cagayan, Cebu, Central Luzon, East Palawan, Northwest Palawan and the Sulu Sea, in what the government described as the largest single‑period allocation of PSCs in the country’s history.
Unveiled by President Ferdinand R. Marcos Jr., the package also includes the nation’s first competitive tender for native hydrogen exploration and several co‑management arrangements with the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).
With an estimated potential investment of US$65.7 million (₱3.83 billion) over a seven‑year exploration period, the agreements will support efforts to identify new energy sources as output from the Malampaya gas field continues to decline.
Planned work under the contracts consists of geological and geophysical studies — including seismic and aeromagnetic surveys — to pinpoint drillable prospects and evaluate the presence of both hydrogen reservoirs and petroleum deposits.
Energy Secretary Sharon S. Garin said the Department of Energy (DoE) will oversee the implementation of the service contracts.
Garin said: “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.”
The PSCs were awarded under the Philippine Conventional Energy Contracting Programme after a competitive process assessing technical, financial and legal qualifications of the bidders.
A consortium comprising Australia-based Triangle Energy (Global), UK-registered Sunda Energy, and Philippine firms PXP Energy and The Philodrill secured PSC 80 and PSC 81, which span 760,000 hectares and 532,000 hectares respectively in the southern Sulu Sea.
These projects will be jointly managed by the DoE and BARMM’s Ministry of Environment, Natural Resources and Energy (BARMM‑MENRE).
Triangle Energy (Global) also received PSC 82 over 480,000 hectares in the Cagayan Basin. In Central Luzon, US-based Koloma won PSC 83 and PSC 84, covering 126,645 hectares and 85,082 hectares respectively, for native hydrogen exploration.
Gas 2 Grid obtained PSC 85, spanning 127,475 hectares in onshore Cebu, while PSC 86 in the Northwest Palawan Basin — covering 132,000 hectares — was granted to a Filipino consortium comprising Anglo Philippine Holdings, The Philodrill, PXP Energy and Forum Energy Philippines.
In the East Palawan Basin, Israel-based Ratio Petroleum secured PSC 87, marking its second Philippine contract following PSC 76, where it conducted a 3D seismic survey in 2024.
According to the DoE, service contractors may now proceed with their approved work programmes, which include geological and geophysical activities, seismic acquisition and drilling, provided all environmental and safety standards are met.
