The Department of Energy (DOE) is funneling P6.1 million from Petroleum Service Contracts (PSC) into scholarships and institutional support for students in Palawan through a new partnership with two state universities.

The agency signed a memorandum of agreement (MOA) with Palawan State University (PSU) and Western Philippines University (WPU) on Wednesday to implement the program funded by offshore petroleum operations in the Northwest Palawan Basin.

The funds were sourced from PSCs 74 and 75 operated by PXP Corp., PSC 14C1 operated by NPG Pty. Ltd., and PSC 14C2 of The Philodrill Corp. PSU will receive $55,000 while WPU will get $50,000 under the initial phase of the program.

“This partnership ensures that the utilization of our country’s energy resources directly benefits our host communities,” Energy Secretary Sharon S. Garin said. 

“By linking petroleum development with education, we are investing in the people of Palawan and empowering the next generation of energy professionals.”

The deal was signed by Garin for the DOE, Dr. Ramon M. Docto for PSU, and Dr. Amabel S. Liao for WPU.

The program will provide monthly stipends and allowances for students residing near petroleum contract areas and support institutional needs identified by PSU and WPU to strengthen academic programs aligned with the energy sector.

Under PSC obligations, service contractors are required to extend assistance to state universities and colleges within host communities.

Each contractor must contribute at least $5,000 per year during the exploration phase and $10,000 per year during the production phase. 

The MOA establishes a mechanism for direct remittance of these funds to the beneficiary universities.