President Ferdinand R. Marcos Jr. announced the award of eight new Petroleum Service Contracts (PSCs), the largest single batch of such contracts in Philippine history, marking a decisive move to accelerate the exploration and production of the nation’s indigenous energy resources.
The contracts, which encompass key exploration areas in the Sulu Sea, Cagayan, Cebu, northwest Palawan, east Palawan, and Central Luzon, were officially presented in Malacañan Palace alongside the President and representatives from both Philippine and international energy partners hailing from Australia, the United Kingdom, Singapore, Israel, and the United States.
This historic award signals reinvigorated investor confidence in the Philippine upstream energy sector, a crucial development as the country seeks new gas exploration initiatives amid the decline of the Malampaya gas field.
According to the Department of Energy (DOE), these eight PSCs represent a significant potential investment commitment of approximately $207 million (around PhP12 billion) over a seven-year exploration period.
“Today marks a milestone. This is the largest batch of Petroleum Service Contracts awarded in a single period in Philippine history,” said DOE Secretary Sharon Garin. “The new batch of PSCs signed by President Marcos serves as a powerful demonstration of this administration’s resolve to accelerate the exploration and production of our country’s indigenous energy resources.”
Pioneering and Inclusive Energy Development
The new batch of contracts includes pioneering projects that underscore a commitment to inclusive and regionally balanced development. Notably, the contracts feature the world’s first competitive bid round for native hydrogen and co-managed petroleum projects with the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).
Secretary Garin reaffirmed the DOE’s commitment to the “complete and timely implementation” of these service contracts, emphasizing their long-term value to national energy security and sustainability.
This record-breaking announcement sets the stage for a new era of intensified energy exploration, bolstering the Philippines’ efforts to ensure a stable and sustainable energy future for all Filipinos.
