The Department of Energy (DOE) officially opened bidding for 18 coal blocks on Friday, Feb. 27, seeking to shore up long-term fuel supplies as several major private and state-held operating contracts approach their expiration dates.

The auction, which includes three pre-determined areas holding an estimated 207.5 million metric tons of reserves, was a shift toward a more transparent and competitive selection process.

The DOE is currently pivoting to a re-tendering model for expiring contracts following legal guidance that they should no longer be simply extended.

Among the high-profile assets up for auction are 10 blocks on Semirara Island in Antique, currently the site of the country’s largest coal operation. The area holds approximately 160 million metric tons and has been managed for 50 years by Semirara Mining and Power Corp., a unit of the Consunji family’s DMCI Holdings Inc.

While the company’s existing contract is set to expire on July 11, 2027, Energy Secretary Sharon Garin said the incumbent remains eligible to participate in the new tender.

Beyond the Semirara assets, the government is also offering 23.5 million metric tons of reserves in the Amulung and Iguig areas of Cagayan province, previously held by D.M. Wenceslao & Associates Inc.

A third site, spanning the Isabela municipalities of Cauayan, Benito Soliven, and Naguilian, contains an estimated 24 million metric tons. That area was formerly occupied by the state-owned PNOC Exploration Corp.

While no legal ban prevents state firms from participating, Department of Energy officials said they have discouraged state-run Philippine National Oil Co. (PNOC) from competing against private bidders for these specific assets. The department is instead prioritizing private sector investment to develop the sites.

Energy Assistant Secretary Myra Fiera Roa said the bidding guidelines were drafted to accommodate a broad range of participants, including newly formed entities and subsidiaries backed by parent corporations.

To qualify, bidders must pass a technical and financial evaluation. The agency is requiring a comprehensive five-year work plan that outlines annual spending commitments and specific programs for mine safety, environmental protection, and community development.

Energy Undersecretary Alessandro Sales said the process is intended to align national energy security with higher operational standards.

Proponents are required to submit detailed methodologies for geological and geohazard assessments, alongside plans for progressive mine rehabilitation and eventual decommissioning.

Applications for the coal operating contracts will remain open until April 28, 2026. The department expects the competitive process to draw interest from both domestic and international energy firms looking to secure a foothold in the Southeast Asian nation’s power sector.