Daily TribuneThe new Petroleum Service Contracts signals ‘a deliberate step towards securing our energy future which unlocks over $200 million in investments.’
President Ferdinand R, Marcos Jr., regarding his signing of eight new Petroleum Service Contracts, said ‘Through these service contracts that will pave the way for explorations in Palawan, Sulu, Cagayan, Cebu, and Central Luzon, we open new opportunities for our energy sector. In the vast waters of Palawan and the Sulu Sea, we are exploring offshore oil and gas reserves. There are also known petroleum resource potential in the provinces of Cagayan and in Cebu.’
PPA POOL
Aiming to boost energy security locally and reducing reliance on imported oil, President Ferdinand Marcos Jr. has unveiled the country’s boldest move in energy exploration and production, granting eight new Petroleum Service Contracts (PSCs) — the largest batch, so far, according to the Department of Energy (DoE).
This will cover exploration areas such as the Sulu Sea, Cagayan, Cebu, Northwest Palawan, East Palawan and Central Luzon.
In his speech, Marcos said petroleum continues to be the main source of energy powering the country.
Reducing dependence on fossil fuels
“While we are fully committed to lowering our dependence on fossil fuels, we cannot disregard the fact that it continues to be our main source of energy. It lights our homes, our industries. It fuels our vehicles that take our children to school and the buses that carry our workers to their offices. It also supports the livelihood of our farmers and fishermen, making their work easier, faster, and more efficient,” he said.
Marcos noted the number of imports made by the Philippines, which he said exposes the vulnerabilities of the country in case of a large world event that is “beyond our control” such as the rise in the price of oil due to the Russia-Ukraine conflict, among others.
“Last year, we imported over 340,000 barrels of liquid fuel. This is equivalent to 99.68 percent of our entire petroleum supply,” Marcos recounted.
“In contrast, we produced over a thousand barrels — just 0.32 percent of our requirement. On natural gas, in 2024, over 46.15 percent of our requirement was imported, while only around 54 percent came from Malampaya,” he added.
World’s first competitive bid
These contracts include the world’s first competitive bid round for native hydrogen and petroleum projects, which will be co-managed with the Bangsamoro Autonomous Region in Muslim Mindanao.
According to Energy Secretary Sharon S. Garin, “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,” she said.
Specifically, the DoE and the Bangsamoro Ministry of Environment, Natural Resources and Energy will jointly oversee exploration projects in the southern Sulu Sea under PSC Nos. 80 and 81.
These contracts have been granted to a consortium comprising Australia’s Triangle Energy (Global) Ltd., the UK’s Sunda Energy Plc, and local firms PXP Energy Corp. and The Philodrill Corporation.
Separately, PSC No. 82, covering the Cagayan Basin, was awarded to Triangle Energy (Global) Limited.
For native hydrogen exploration in Central Luzon, PSC Nos. 83 and 84 were awarded to US-based Koloma Incorporated.
In onshore Cebu, PSC No. 85 was given to Gas 2 Grid Pte. Limited.
The Northwest Palawan Basin’s PSC No. 86 was awarded to a consortium composed of Philodrill Corp., Anglo Philippine Holdings Corp., PXP Energy Corp., and Forum Energy Philippines Corporation.
Meanwhile, PSC No. 87 in the East Palawan Basin was awarded to Ratio Petroleum Ltd. of Israel, which already holds an existing contract in the area and completed a 3D seismic survey there last year.
