October 9, 2025 | 12:00am
MANILA, Philippines — President Marcos has awarded eight new petroleum service contracts (PSCs) worth around $207 million in a bid to ramp up local energy production and reduce the country’s oil import dependence.
The contracts cover exploration areas across Cagayan, Cebu, northwest Palawan, east Palawan, Central Luzon and the Sulu Sea, according to the Department of Energy.
The DOE said the new PSCs include the world’s first competitive bid round for native hydrogen alongside co-managed projects with the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).
“These service contracts signify not only our determination to secure new energy sources but also our readiness to embrace innovation and sustainability while reducing import dependence,” Energy Secretary Sharon Garin said.
Among the successful bidders were the consortia led by tycoon Manuel V. Pangilinan’s PXP Energy Corp.
PXP, along with The Philodrill Corp., Australia’s Triangle Energy (Global) Ltd. and United Kingdom’s Sunda Energy Plc, bagged PSCs 80 and 81 spanning 780,000 hectares and 532,000 hectares in BARMM, respectively.
These contracts are aimed at revitalizing petroleum exploration in the southern Sulu Sea to boost the local economy across BARMM and Mindanao.
Similarly, PXP and its partners Philodrill, Anglo Philippine Holdings Corp. and Forum Energy Philippines Corp. secured PSC 86 to explore 132,000 hectares in the northwest Palawan basin.
Furthermore, the government awarded PSC 82 — covering 480,000 hectares in Cagayan basin — to Triangle Energy and PSC 85 — spanning 127,475 hectares in onshore Cebu — to Gas 2 Grid Pte. Ltd.
In the east Palawan basin, Israel’s Ratio Petroleum Ltd. won PSC 87. This marks the company’s second contract in the Philippines following PSC 78, also in the same location.
For native hydrogen exploration in Central Luzon, the Marcos administration awarded PSC 83 and 84 totaling 211,727 hectares to Koloma Inc., a company based in the United States.
Following the landmark unveiling of these PSCs, the DOE said contractors may now start their respective work programs over a seven-year exploration period. These include geological and geophysical studies, seismic surveys and drilling activities.
“From conventional petroleum to native hydrogen, we are expanding the frontiers of Philippine energy exploration,” Garin added.
“As we work with our partners in both the private sector and the BARMM, we move closer to our vision of a truly energy-secure and inclusive Philippines,” she said.