(Photo courtesy of PCO)
President Ferdinand Marcos Jr. has announced the awarding of eight new Petroleum Service Contracts (PSC 80–87) covering oil, natural gas and natural hydrogen exploration in various parts of the Philippines, with potential investment commitments reaching US$207 million.
The contracts are part of the administration’s efforts to expand domestic energy exploration, attract foreign and local investments, and strengthen the country’s long-term energy security.
The new exploration agreements cover several areas, including the Sulu Sea, Cagayan, Central Luzon, Cebu, Northwest Palawan and East Palawan.
Among the companies involved in exploration activities in the Sulu Sea are Triangle Energy, Sunda Energy, PXP Energy and The Philodrill.
Triangle Energy will also undertake exploration activities in Cagayan, while Koloma Inc. will pursue natural hydrogen exploration in Central Luzon.
In Cebu, Gas 2 Grid is among the companies awarded exploration rights.
Meanwhile, The Philodrill, Anglo Philippine Holdings, PXP Energy and Forum Energy Philippines are involved in exploration activities in Northwest Palawan.
Israel-based Ratio Petroleum Ltd. will undertake exploration activities in East Palawan.
The government estimates that the eight contracts could generate approximately US$207 million in investment commitments over a seven-year exploration period.
The agreements are expected to support efforts to identify and develop potential domestic energy resources, particularly as the Philippines seeks to reduce its dependence on imported fuel and address growing energy demand.
The initiative also forms part of the administration’s broader strategy to encourage private-sector participation in the energy industry and improve the country’s energy supply outlook.
While the contracts represent potential investments in exploration, actual oil and gas production will depend on the results of geological surveys, drilling activities and assessments of commercially viable reserves.
