In the race to develop more domestic energy sources, the government has approved two new projects aimed at boosting local production and strengthening long-term energy security, as an ongoing crisis exposes the system’s vulnerability.

One project will develop the Alegria Oil and Gas Field in Cebu, while the other will explore natural hydrogen resources in Leyte.

The Department of Energy (DOE) confirmed on Tuesday that President Ferdinand R. Marcos, Jr. signed the Service Contract (SC) 89, located onshore in southern Cebu and operated by Texcal Energy Mahato Inc., to restart Alegria field operations after three years of dormancy. 

The project is expected to create local jobs, stimulate economic activity, and supply additional indigenous energy to Cebu and the wider Visayas region. 

Estimates place total oil in the field at 27.93 million barrels, with about 3.35 million barrels recoverable. Recoverable natural gas is projected at 6.6 billion cubic feet, or roughly 70 percent of total reserves.

Service Contract 90 (SC 90), on the other hand, has been awarded to Matahio Energy Philippines, in partnership with Ophiolite Energy, to explore natural hydrogen in Leyte. 

The project targets areas with ophiolite formations, where serpentinization—a natural process in which water reacts with specific rocks—can generate hydrogen gas. It will assess whether commercially viable hydrogen resources are present.

“These Petroleum Service Contracts reflect our determination to move indigenous energy development forward, both by revitalizing known resources and by opening pathways for frontier exploration,” Energy Secretary Sharon S. Garin said on Tuesday.

She added that the government is balancing immediate supply needs with long-term planning. 

“Our task is not only to respond to present energy needs, but to prepare decisively for the future. By advancing new exploration and supporting responsible upstream development, we are laying the groundwork for a steadier, more secure, and more sustainable energy system for the next generation,” Garin said.

According to the DOE, all contractors are required to provide scholarships during exploration and implement social development programs during production.

To date, the current administration has awarded a total of 12 petroleum service contracts (PSCs), including PSC 79 signed in August 2023, eight PSCs signed in October 2025, and the 10th contract, SC 88, signed in December 2025.