The Department of Energy (DOE) has launched eight new petroleum service contracts (PSCs) in a renewed push to strengthen the Philippines’ energy independence and reduce reliance on imported fuel.
Energy Secretary Sharon Garin expressed optimism that these new exploration areas will play a vital role in unlocking indigenous energy resources and advancing long-term national energy security and sustainability.
The newly awarded contracts span key regions across the country, including the Sulu Sea, Cagayan Basin, Cebu, Northwest Palawan, East Palawan, and Central Luzon.
Secretary Garin saud the projects are not only expected to discover new petroleum reserves but also explore native hydrogen potential, a move she described as expanding the frontiers of Philippine energy exploration. She also noted the initiative aims to stimulate economic growth in the host regions while fostering innovation and environmental sustainability.
Among the awarded areas, two service contracts in the Sulu Sea—PSC 80 and 81—were awarded to a consortium composed of Triangle Energy from Australia, Sunda Energy from the United Kingdom, and Philippine-based firms PXP Energy and The Philodrill Corporation. Triangle Energy also secured PSC 82 located in the Cagayan Basin. Meanwhile, American firm Koloma, Inc. was awarded PSCs 83 and 84 in Central Luzon for native hydrogen exploration.
In Cebu, PSC 85 was granted to Gas 2 Grid Pte. Ltd., while PSC 86 in the Northwest Palawan Basin went to a consortium of The Philodrill Corporation, Anglo Philippine Holdings Corporation, PXP Energy, and Forum Energy Philippines. Israeli company Ratio Petroleum Ltd. was awarded PSC 87 in the East Palawan Basin, marking its second exploration contract in the Philippines following its earlier involvement in PSC 78, where it conducted a successful 3D seismic survey last year.
All eight service contracts were awarded through a transparent and competitive selection process under the Philippine Conventional Energy Contracting Program (PCECP), ensuring that only technically and financially qualified proponents were granted exploration rights.
According to the DOE, the approved work programs will include geological and geophysical studies, seismic surveys, and drilling activities to assess petroleum and hydrogen potential.
The contractors are required to comply with strict environmental and safety standards. Additionally, even during the early phases of exploration, developers are expected to contribute to educational scholarships, capacity building, and community development initiatives.
Once production begins, host communities are set to benefit further through local employment, infrastructure, and social programs.
To support the development of frontier and marginal petroleum areas, the DOE also issued a new circular last month offering special cost-recovery allowances for service contractors.
These allowances are designed to encourage investment in new plays, remote gas development, and other high-risk areas, and will be drawn from the government’s royalty share—ensuring that it remains no less than 60 percent of net income after expenses.
With the addition of the eight new PSCs, the total number of active petroleum service contracts in the Philippines has now risen to 26, signaling a renewed commitment by the government to revitalize domestic petroleum exploration and secure the country’s long-term energy future.
