The government has awarded two new petroleum service contracts covering oil production in Cebu and natural hydrogen exploration in Leyte, expanding the Philippines’ upstream energy portfolio as it seeks to reduce reliance on imported fuels.

In a media release on Tuesday, the Department of Energy (DOE) said President Ferdinand R. Marcos Jr. approved Service Contract (SC) 89 for the development of the Alegria Oil and Gas Field in southern Cebu, and SC 90 for the exploration of natural hydrogen resources in Leyte.

The latest awards bring to 12 the total number of petroleum service contracts issued under the current administration, reflecting continued efforts to accelerate domestic energy exploration and production.

SC 89, to be operated by Texcal Energy Mahato Inc., will cover the redevelopment of the Alegria field, which has been idle for the past three years. The DOE said the project aims to restart production and contribute additional indigenous supply to Cebu and the wider Visayas grid, while also generating local employment and economic activity.

Based on initial estimates, the Alegria field contains about 27.93 million barrels of oil in place, with roughly 3.35 million barrels considered recoverable. The field also holds an estimated 9.42 billion cubic feet of natural gas, of which around 6.6 billion cubic feet are deemed recoverable.

Meanwhile, SC 90 has been awarded to Matahio Energy Philippines in partnership with Ophiolite Energy for the exploration of naturally occurring hydrogen in Leyte. The contract area includes ophiolite rock formations, which are considered prospective for hydrogen generation through serpentinization—a process where water reacts with subsurface rocks to produce hydrogen gas.

The DOE said the project will assess whether naturally occurring hydrogen can be found in commercially viable quantities, positioning it as a frontier exploration effort within the country’s energy mix.

“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.

“At a time when the country remains exposed to global fuel market volatility brought by the developments in the Middle East, every serious effort to develop our own energy resources strengthens our long-term energy security and helps build a more resilient future for the Filipino people,” she added.

Garrin said that the government’s energy strategy must balance immediate supply needs with long-term development.

The DOE noted that contractors are required to provide scholarships during the exploration phase and implement social development programs once production begins, ensuring host communities benefit from project development.

 What do you think—can frontier resources like natural hydrogen meaningfully contribute to the Philippines’ long-term energy security?

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