The Department of Energy (DOE) is reviewing at least six more potential petroleum service contracts (PSCs), signaling continued momentum in the country’s energy exploration efforts.
DOE undersecretary Alessandro Sales said over the weekend that three new PSCs are currently under evaluation by the Office of the President and the DOE, while another three are in the application stage.
This follows last week’s announcement of eight newly awarded PSCs, with a combined potential investment of $207 million over a seven-year exploration period. These exploration areas span the Sulu Sea, Cagayan, Cebu, Northwest Palawan, East Palawan, and Central Luzon.
Energy Secretary Sharon Garin emphasized the long-term value of these projects for national energy security and regional development, noting their potential to unlock new indigenous energy resources.
The exploration work will include seismic, aeromagnetic, geological, and geophysical surveys to identify viable drilling prospects, with potential discoveries in both petroleum and native hydrogen reserves.
Beyond exploration, the PSCs will also fund educational scholarships, local capacity-building, and community development initiatives. Once production begins, host communities are expected to benefit through infrastructure development, social programs, and local employment.
The DOE assured that the PSCs were awarded through a transparent and competitive process under the Philippine Conventional Energy Contracting Program, ensuring only qualified proponents were granted exploration rights.
To further encourage investment, the DOE recently issued a circular granting special allowances to service contractors, covering cost recovery, marginal operations, frontier areas, and gas development in remote regions. These incentives will be funded through the government’s royalty share but will maintain at least a 60 percent retention rate based on net income calculations.
Currently, there are 18 active petroleum service contracts in the country. The DOE expressed optimism that the recent developments and policy incentives will attract more energy investors to support the Philippines’ long-term energy sustainability goals.
