After a while of waiting for the country’s oil and gas industry to develop, President Ferdinand Marcos awarded eight new petroleum service contracts (SCs) to foreign and local firms, and it is said to be the biggest batch in history. But what do these explorations really mean for the country’s energy future?

According to Department of Energy (DOE) Secretary Sharon Garin, the energy exploration projects would help reduce the country’s dependence on imported fuels used for both the transport sector and power generation.

Strictly adhering to environmental and safety standards, these exploration works would study the availability of petroleum and hydrogen sources in various areas in Luzon, Visayas, and Mindanao.

These work programs are made to assess the petroleum and hydrogen potential of the contract areas while ensuring strict adherence to environmental and safety standards.

“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,” she said.

These President-approved contracts have gone through a rigorous competitive selection process (CSP) under the Philippine Conventional Energy Contracting Program (PCECP) to make sure that these exploration developments are legal, as well as financially and technically qualified.

The awarded service contractors will now move forward with their geological and geophysical studies, seismic surveys, and drilling activities.

“By promoting responsible exploration and development, the DOE seeks to unlock new indigenous energy resources, stimulate regional economic growth, and advance the country’s long-term goal of achieving a stable, sustainable, and inclusive energy future,” the department noted.

Some of these contractors have previously held contracts, such as Manuel V. Pangilinan-led PXP Energy Corp., which already had development and production petroleum SCs. With the new wave of awards, they can further pursue their exploration activities.

This includes a petroleum exploration contract in the southern Sulu Sea, awarded to a consortium composed of Australia’s Triangle Energy (Global) Limited, the United Kingdom’s Sunda Energy Plc, PXP Energy Corp., and local firm Philodrill Corp.

Another SC was granted to a consortium of local companies: Philodrill Corp., Anglo Philippine Holdings Corp., PXP Energy, and Forum Energy Philippines Corp. for its plans in the Northwest Palawan basin.

The Eastwest Palawan basin will also be explored by Israel’s Ratio Petroleum Ltd. for its oil and gas potential, while the onshore Cebu will be studied by Australia’s Gas 2 Grid Pte. Ltd.

Triangle Energy has also been granted a go-ahead for the Cagayan basin exploration.

Koloma Inc., which is a United States (US) based startup firm, will pursue hydrogen developments in Central Luzon under two SCs.