The Department of Energy (DOE) of the Philippines has underscored its strong commitment to revitalizing the nation’s petroleum sector and maximizing the utilization of indigenous energy resources. This commitment was highlighted at the Farmout and Opportunities Forum of the 2025 Southeast Asia Petroleum Exploration (SEAPEX) Society Exploration Conference, held in Singapore from May 6th to 9th, 2025.
During the forum, DOE Undersecretary Alessandro O. Sales delivered a keynote address outlining key regulatory reforms and new investment incentives designed to invigorate the country’s upstream petroleum sector and prioritize the development of local natural gas resources.
Undersecretary Sales emphasized the significant policy initiatives undertaken by the Philippines since the 2023 SEAPEX Forum. These include the implementation of data classification reforms, which have enhanced transparency and improved investor access to crucial energy data. Furthermore, the Philippine petroleum regulatory framework has been expanded to include native hydrogen, recognizing its potential as a future energy source.
The DOE has also introduced new guidelines for Development and Production Contracts (DPCs) specifically targeting smaller, previously discovered but undeveloped fields, aiming to unlock their potential and contribute to the nation’s energy supply. Additionally, the Multi-Client Business Model has been revived to address the critical need for updated geological and geophysical data across the Philippines.
Looking ahead, the department announced an upcoming DOE circular that will introduce stackable special allowances. This innovative incentive mechanism is designed to encourage exploration activities in high-risk or underdeveloped areas, making these ventures more attractive to investors.
A significant legislative milestone highlighted during the forum was the passage of the Philippine Natural Gas Development Act in 2024. This landmark legislation mandates the prioritization of indigenous natural gas for domestic consumption and empowers the DOE to establish minimum utilization levels, ensuring that locally sourced gas benefits the Filipino people first.
The Philippines is actively seeking bold and visionary partners to collaborate on upstream development projects. This call for investment is particularly critical as the Malampaya gas field, a key energy source for the nation, is projected to fall short of meeting the national demand of 4.5 gigawatts (GW) in natural gas-powered electricity. This shortfall presents a substantial strategic opportunity for upstream investors, representing a potential 3.2 gigawatts of power generation capacity.
The DOE’s presence and announcements at SEAPEX 2025 signal a clear and proactive approach to strengthening the Philippines’ energy security through the strategic development of its indigenous petroleum resources. The government is creating a more transparent, attractive, and supportive environment for investment in its upstream sector, paving the way for a more sustainable and self-reliant energy future.
