Philippines
As the country looks for long-term energy security amid declining supply from the Malampaya field, the Philippine government has awarded eight new Petroleum Service Contracts (PSCs), the largest batch issued in a single period, to accelerate domestic oil and gas exploration. At a ceremony in Malacañang on October 8, 2025, President Ferdinand Marcos Jr formally announced the contracts.
The contracts represent a total investment commitment of $207 million over a seven-year exploration cycle and cover exploration areas in the Sulu Sea, Cagayan Basin, Cebu, Northwest Palawan, East Palawan, and Central Luzon.
"These service contracts reflect our continued efforts to attain greater energy security, economic stability, and national self-reliance," Marcos stated, stressing the significance of community involvement and responsible development.
The Greatest Honour in Philippine Upstream History
Under the Philippine Conventional Energy Contracting Programme (PCECP), the Department of Energy (DOE) verified that all PSCs were chosen through an open and competitive process, guaranteeing that winning proponents complied with legal, technical, and financial requirements.
Principal Contract Honours:
-
Southern Sulu Sea, PSC 80 and PSC 81
given to a group that included The Philodrill Corp., Sunda Energy Plc, PXP Energy Corp., and Triangle Energy (Global) Ltd.
Total coverage: about 1.3 million hectares
These PSCs, which are co-managed with BARMM-MENRE, represent a resurgence of research in the communities of Mindanao and BARMM -
PSC 82 in the Cagayan Basin
The recipient is Triangle Energy (Global) Ltd.
Coverage: 480,000 ha -
PSC 83 and PSC 84 (Native Hydrogen, Central Luzon)
awarded to Koloma Inc., a U.S. company.
Coverage: 85,082 and 126,645 hectares
An innovative step towards zero-carbon energy sources, these are the first native hydrogen exploration contracts in history to be awarded through competitive bidding -
Onshore Cebu, PSC 85
given to the Gas 2 Grid Pte. Ltd.
Area: 127,475 ha -
PSC 86 (northwest Palawan basin)
Awarded to a Filipino consortium of The Philodrill Corp, Anglo Philippine Holdings, PXP Energy, and Forum Energy
The area is 132,000 ha.
Despite the block's proximity to the West Philippine Sea, the DOE stated that it does not expect Chinese interference -
PSC-87 (East Palawan Basin)
Ratio Petroleum Ltd. of Israel has been awarded a second PSC in the area
Supporting the Philippines' Energy Transition
The contracts are made at a time when 40% of Luzon's electricity comes from the Malampaya Gas Field, which is about to run out. Malampaya is predicted to run dry by 2027, so new exploration is essential to maintaining stability in the future.
According to the DOE, service contractors can now start identifying drillable sites, conducting aeromagnetic studies, and conducting seismic surveys. During early exploration, companies must support community programmes, capacity building, and scholarships in addition to technical work.
With the goal of delivering "first gas" by late 2026, the government is hopeful that these awards will result in new gas discoveries, particularly in the Malampaya expansion blocks
A Crossroads for the Upstream Sector
Following regulatory changes and recent legal clarification regarding Malampaya, investor confidence in the Philippines' upstream energy sector has been restored with the issuance of these eight PSCs.
Marcos asked contractors to use caution
"Let us demonstrate that responsible business practices and national development can coexist - growth based on accountability and transparency is growth that endures."
The contracts are anticipated to create new jobs, encourage investments in frontier basins, and advance the Philippines' long-term objective of attaining energy security through diversified domestic production now that exploration operations are under way.
Latest Government Tenders and Contract Awards in Philippines - TendersOnTime
TendersOnTime - Your trusted source for latest government tenders, RFPs, RFQs, and contract awards in Philippines
Stay updated with the latest public procurement opportunities and tender notices in Philippines at TendersOnTime
Find all Philippines government tenders, eProcurement updates, and contract award notices on TendersOnTime
Explore live tenders, bids, and procurement opportunities in Philippines with TendersOnTime - The global tender portal
TendersOnTime brings you verified tenders, procurement news, and contract awards from Philippines and worldwide
#ContractAward #ProcurementNews #OilExploration #PhilippinesEnergy #PetroleumServiceContract #PCECP #PhilippineDOE #EnergySecurity #Malampaya #OilAndGasPhilippines #HydrogenEnergy #UpstreamEnergy #SuluSea #PalawanBasin #CagayanBasin #CentralLuzon #BARMM #EnergyTransition #AwardedTenders
