President Ferdinand R. Marcos Jr. has announced eight new Petroleum Service Contracts (PSCs) for exploration areas in the Sulu Sea, Cagayan, Cebu, northwest Palawan, east Palawan, and Central Luzon, marking the largest batch of such contracts in Philippine history.
'Today marks a milestone. This is the largest batch of Petroleum Service Contracts awarded in a single period in Philippine history,' Department of Energy (DOE) Secretary Sharon Garin said in her welcome remarks during the official presentation of the signed agreements in Malacañan Palace.
Garin said the new batch of PSCs signed by President Marcos serve as 'a powerful demonstration of this administration’s resolve to accelerate the exploration and production of our country’s indigenous energy resources.'
Joining the President during the presentation of the PSCs were Philippine and international partners from Australia, the United Kingdom, Singapore, Israel, and the United States.
Garin said the new contracts include the world’s first competitive bid round for native hydrogen and co-managed petroleum projects with the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), a milestone for inclusive and regionally balanced energy development.
The eight PSCs signal the reinvigorated investor confidence in the Philippine upstream energy sector, paving the way for new gas exploration initiatives amid the decline of the Malampaya gas field.
Collectively, the contracts represent a potential investment commitment of approximately USD207 million, equivalent to around PhP12 billion, over a seven-year exploration period, according to the DOE.
Garin also 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.
Source: Department of Energy (DOE)
