The Philippine government has signed eight new Petroleum Service Contracts (PSCs) covering exploration areas in the Sulu Sea, Cagayan, Cebu, Northwest Palawan, East Palawan, and Central Luzon worth $207 million over a seven-year exploration period.
The Department of Energy (DoE) announced on Wednesday the award of the largest batch of contracts in the country's history. 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.
“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,” Energy Secretary Sharon S. Garin said.
“From conventional petroleum to native hydrogen, we are expanding the frontiers of Philippine energy exploration,” she added.
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 Corp.
Separately, PSC No. 82, covering the Cagayan Basin, was awarded to Triangle Energy (Global) Ltd.
For native hydrogen exploration in Central Luzon, PSC Nos. 83 and 84 were awarded to US-based Koloma Inc.
In onshore Cebu, PSC No. 85 was given to Gas 2 Grid Pte. Ltd.
The Northwest Palawan Basin's PSC No. 86 went to a consortium of The Philodrill Corp., Anglo Philippine Holdings Corp., PXP Energy Corp., and Forum Energy Philippines Corp.
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.
Work programs under the contracts will involve geological and geophysical surveys, seismic studies, and drilling activities to assess the petroleum and hydrogen potential of the covered areas.
According to the DoE, all contracts went through a transparent and competitive selection process under the Philippine Conventional Energy Contracting Program.
Under the agreements, service contractors are also required to fund educational scholarships, training programs, and community development projects during the exploration stage.
Once production begins, host communities are expected to benefit further through infrastructure development, social programs, and local employment.
Contractors may now start their work programs, subject to strict environmental and safety standards.