Full Breakdown
Philippines Awards Eight New Petroleum and Hydrogen Exploration Licenses
10/11/2025, 11:37:01 AM
Overview of the New Contracts
On October 9, 2025, President Ferdinand Marcos Jr. signed eight new Petroleum Service Contracts (PSCs) aimed at boosting energy security in the Philippines. This historic move marks the largest batch of PSCs awarded in a single period, including the world's first competitive bid for native hydrogen exploration. The contracts were awarded to companies from Australia, Israel, the Philippines, Singapore, the UK, and the USA, covering exploration areas in the Sulu Sea, Cagayan, Cebu, Central Luzon, and Palawan.
Details of the Contracts
The awarded PSCs include:
- PSC 80 and PSC 81: Covering approximately 780,000 hectares and 532,000 hectares in the Sulu Sea, awarded to a consortium comprising Triangle Energy (Global) Ltd., Sunda Energy PLC, PXP Energy Corp., and The Philodrill Corp.
- PSC 82: Triangle Energy also received this contract for 480,000 hectares in the Cagayan basin.
- PSC 83 and PSC 84: Awarded to Koloma Inc. for native hydrogen exploration in Central Luzon, covering over 126,600 hectares and 85,000 hectares, respectively.
- PSC 85: Granted to Gas 2 Grid Pte Ltd for nearly 127,500 hectares onshore in Cebu.
- PSC 86: Awarded to a consortium of Filipino companies, including Philodrill, Anglo Philippine Holdings Corp., PXP Energy Corp., and Forum Energy Philippines Corp., covering 132,000 hectares in the Northwest Palawan Basin.
- PSC 87: Awarded to Israel's Ratio Petroleum Ltd., targeting the East Palawan Basin.
The contracts represent a potential investment commitment of approximately $207 million over a seven-year exploration period.
Implications for Energy Security
The Department of Energy (DOE) emphasized that these contracts are critical for revitalizing the Philippine upstream energy sector, particularly as the Malampaya gas field faces declining production. Energy Secretary Sharon S. Garin stated that the contracts signify the country's determination to secure new energy sources while embracing innovation and sustainability. The DOE plans to conduct geological and geophysical studies, seismic surveys, and drilling activities as part of the exploration efforts.
Criticism and Opposition
While the government promotes these contracts as a pathway to energy independence, concerns have been raised regarding the environmental impact of increased exploration activities. Critics argue that the push for new fossil fuel projects may contradict the Philippines' commitments to sustainable energy practices.
Official Statements
President Marcos remarked, "These service contracts represent our continued efforts to attain greater energy security, economic stability, and self-reliance." He noted the Philippines' heavy reliance on imported oil, with 99.68% of petroleum needs met through imports in 2024. The President assured investors that his administration is streamlining processes and offering incentives to encourage responsible exploration.
What's Next
The DOE plans to initiate work programs under the new PSCs, which will include technical studies and prospect evaluations to prepare for potential drilling. The first drilling preparations are expected to begin in the second half of 2026, pending seismic and environmental assessments. A joint monitoring committee will also be established to oversee the Sulu Sea service contracts, marking a significant collaboration between the national government and the Bangsamoro Autonomous Region in Muslim Mindanao.
Verbatim Quotes
- “By GlobalData Learn more about Strategic Intelligence Garin said: “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.” — Sharon S. Garin, Energy Secretary
- “We remain fully committed to supporting the Philippine Government’s goal of achieving energy self-sufficiency through the responsible development of the country’s indigenous resources.” — Manuel V. Pangilinan, Chairman of PXP Energy Corp.