The Philippines
With the announcement of eight new Petroleum Service Contracts (PSCs), the largest single-period allocation in the country's history, the Philippines has made significant progress towards bolstering its long-term energy security. The contracts represent a major expansion of the nation's upstream exploration efforts and cover several strategic basins, including Cagayan, Cebu, Central Luzon, East Palawan, Northwest Palawan, and the Sulu Sea.
The awards also include the nation's first competitive tender for domestic hydrogen, according to President Ferdinand R. Marcos Jr. and the Department of Energy (DoE), indicating a move towards the exploration of next-generation clean fuels. In order to improve regional cooperation and investment, a number of PSCs will also be co-managed with the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).
A Strategic Drive to Increase Energy Independence and Replace Malampaya
The Philippines is rushing to find new natural gas sources because the Malampaya gas field is in decline. Over the course of a seven-year exploration period, the eight PSCs have the potential to invest $65.7 million (₱3.83 billion) in seismic surveys, geological studies, drilling programmes, and emerging hydrogen exploration technologies.
The initiative's significance was underlined by Energy Secretary Sharon S. Garin, who said:
"These service agreements demonstrate our commitment to securing new energy sources as well as our willingness to embrace innovation and sustainability while lowering reliance on imports."
Key Contract Awards: Who Won the Big PSCs?
After a competitive assessment of legal, technical, and financial capabilities, the PSCs were granted under the Philippine Conventional Energy Contracting Programme (PCECP).
PSC 80 & PSC 81 in the Southern Sulu Sea
given to an alliance of:
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Australia-based Triangle Energy (Global)
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UK's Sunda Energy
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The Philippine Philodrill
Covering:
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PSC 80: about 760,000 ha
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532,000 ha in PSC 81
DoE and BARMM-MENRE are co-managers
PSC 82: Cagayan Basin
Triangle Energy (Global) received this award
About 480,000 hectares
PSC 83 & PSC 84 (Native Hydrogen) in Central Luzon
Given to: Koloma, USA
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83 PSC: 126,645 ha
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85,082 ha in PSC 84
These PSCs are the nation's first contracts for hydrogen exploration
Cebu Onshore: PSC 85
Presented to: Gas 2 Grid
Area covered: 127,475 ha
PSC 86, Northwest Palawan Basin
Given to a Filipino group:
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Philippine Anglo Holdings
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A Philodrill
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Energy PXP
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Forum for Energy Philippines
132,000 hectares
PSC 87: East Palawan Basin
Ratio Petroleum (Israel) is the recipient.
After finishing a 3D seismic survey for PSC 76 in 2024, this is Ratio's second PSC in the nation.
Work Programme: Drilling Potential, G&G Research, and Seismic Surveys
Contractors will start comprehensive work programmes under the new PSCs, such as:
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Seismic and aeromagnetic surveys in two and three dimensions
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Finding prospects that are drillable
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Evaluation of natural hydrogen sources
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Safety and environmental compliance procedures
According to the DoE, after formal implementation, exploration activities could start right away.
A Pivotal Moment for Philippine Energy Research
The historic allocation marks the beginning of a new era for the Philippines' upstream industry, which is shifting away from conventional petroleum and towards new energy sources. The nation is depending on these PSCs to open new onshore and offshore reserves in response to growing import costs and declining domestic output.
The action, as Energy Secretary Garin pointed out, is both innovative and urgent, putting the Philippines in a better position to secure its energy future and drawing international investors to one of Southeast Asia's most promising exploration frontiers.
