Eight new petroleum service contracts (PSCs), with potential investments reaching as much as $207 million, were awarded on Wednesday.
The eight PSCs cover exploration areas across Sulu Sea, Cagayan, Cebu, Northwest Palawan, East Palawan, and Central Luzon. The service contractors are expected to discover native hydrogen reservoirs and new petroleum fields during the 7-year exploration period.
The eight PSCs that were unveiled by President Ferdinand R. Marcos Jr. are the following:
PSC Nos. 80 and 81 were awarded to a consortium composed of Triangle Energy (Global) Limited, an Australian company; Sunda Energy Plc, registered in the United Kingdom; and the Philippine-based firms PXP Energy Corp. and the Philodrill Corp.
These are co-managed by the DOE and the Ministry of Environment, Natural Resources, and Energy of the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM-MENRE). SC80 covers approximately 780,000 hectares while SC 81 spans about 532,000 hectares.
PSC No. 82, located in Cagayan basin and has an area of 480,000 hectares, was awarded to Triangle Energy (Global) Ltd.
PSC Nos. 83 and 84, both for native hydrogen exploration in Central Luzon, were awarded to US-based Koloma, Inc. SC 83 covers 126,645 hectares while SC 84 covers 85,082 hectares.
PSC No. 85, covering 127,475 hectares in onshore Cebu, was awarded to Gas 2 Grid Pte. Ltd.
PSC No. 86-awarded to consortium of Filipino companies composed of The Philodrill, Anglo Philippine Holdings Corp., PXP Energy Corp., and Forum Energy Philippines Corp.-covers 132,000 hectares in the Northwest Palawan Basin.
PSC No. 87, located in the East Palawan Basin, was awarded to Ratio Petroleum Ltd. of Israel. This marks the company’s second PSC, following PSC 78, also situated in the East Palawan Basin, where Ratio successfully conducted a 3D seismic survey last year.
The service contractors can now commence their respective work programs, which will include geological and geophysical studies, seismic survey, sand drilling activities. These work programs are designed to assess the petroleum and hydrogen potential of the contract areas while ensuring strict adherence to environmental and safety standards.
Beyond exploration, service contractors will fund and undertake educational scholarships, capacity building, and community development programs even during the early exploration phase. Once production begins, host communities will further benefit through infrastructure development, social programs, and local employment opportunities generated by these projects.
The Department of Energy (DOE) said these eight PSCs signal the reinvigorated investor confidence in the Philippine upstream energy sector, paving the way for new gas exploration initiatives.
‘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. From conventional petroleum to native hydrogen, we are expanding the frontiers of Philippine energy exploration,’ DOE Secretary Sharon Garin said.