President Ferdinand R. Marcos Jr. today unveiled eight new Petroleum Service Contracts (PSCs) under the Department of Energy’s (DOE) latest exploration initiative, representing a record investment of around USD 207 million. The awards mark two historic firsts for the DOE: the world’s first competitive bid round for native hydrogen and the agency’s first co‑managed petroleum projects with the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) — a milestone in both inclusivity and balanced regional energy development.

The contracts cover key exploration areas in the Sulu Sea, Cagayan, Cebu, Northwest Palawan, East Palawan, and Central Luzon.

The seven‑year contracts will involve geological and geophysical studies, seismic and aeromagnetic surveys, and drilling operations aimed at expanding the Philippines’ indigenous petroleum and hydrogen resources.

According to the DOE, the new projects spotlights the administration’s push to bolster domestic energy exploration, reduce dependence on imported fuels, and ensure long-term energy security.

“These service contracts signify not only our determination to secure new energy sources, but also our readiness to embrace innovation and sustainability,” said Energy Secretary Sharon S. Garin. “From conventional petroleum to native hydrogen, we are expanding the frontiers of Philippine energy exploration.”

The contracts were awarded under the Philippine Conventional Energy Contracting Program (PCECP) to several international and local energy companies. These include:

• PSC 80 & 81 – Triangle Energy (Global) Ltd. (Australia), Sunda Energy Plc (UK), PXP Energy Corp., and Philodrill Corp., for exploration in the Sulu Sea, co-managed with BARMM MENRE;
• PSC 82 – Triangle Energy (Global) Ltd., for the Cagayan Basin;
• PSC 83 & 84 – Koloma, Inc. (USA), for native hydrogen exploration in Central Luzon;
• PSC 85 – Gas 2 Grid Pte. Ltd., for onshore Cebu;
• PSC 86 – Philodrill Corp., Anglo Philippine Holdings Corp., PXP Energy Corp., and Forum Energy Philippines Corp., for the Northwest Palawan Basin; and
• PSC 87 – Ratio Petroleum Ltd. (Israel), for the East Palawan Basin.

The DOE said the projects are expected to create employment opportunities, strengthen local supply chains, and support community programs in host areas.

Energy Secretary Garin also said the DOE remains committed to ensuring the timely implementation of the new contracts and to “positioning the Philippines as a competitive hub for responsible exploration and innovation.”

Do you think the new exploration contracts will help the Philippines achieve greater energy independence in the next decade?

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