To expand domestic energy development amid the ongoing global price and supply volatility, the Department of Energy (DOE) announced that two new petroleum service contracts (SCs) will soon begin operations.

In a statement on Tuesday, April 7, the DOE said that President Ferdinand R. Marcos Jr. signed off on the Alegria oil and gas field in Cebu province, which will soon restart operations, and a natural hydrogen generation project in Leyte province.

Energy Secretary Sharon Garin said these contracts would revitalize existing sources and open more exploration works.

“At a time when the country remains exposed to global fuel market volatility brought by the developments in the Middle East, every serious effort to develop our own energy resources strengthens our long-term energy security and helps build a more resilient future for the Filipino people,” she said.

SC 89 is located onshore in southern Cebu and covers the development and production of the Alegria oil and gas field, which is operated by Texcal Energy Mahato Inc.

According to the DOE, the project is expected to begin re-operations for the Alegria field three years after its dormancy. The area is said to have 27.93 million barrels of oil in place, of which 12 percent, or 3.35 million barrels, is recoverable. For natural gas, the DOE estimates 6.6 billion cubic feet of recoverable resources, nearly 70 percent of the field’s overall gas reserves.

Apart from contributing to domestic energy resources for Cebu and Visayas, it is anticipated to stimulate economic activity and create job opportunities.

SC 90, on the other hand, is meant for the exploration of natural hydrogen resources in the onshore Leyte area. The contract was awarded to Matahio Energy Philippines, in partnership with Ophiolite Energy.

The area is said to have ophiolite formations, which could be prospective for natural hydrogen generation through serpentinization, a process where water reacts with rocks to produce hydrogen gas.

Currently, President Marcos has signed a total of 12 SCs, following SC 79 signed in 2023, eight SCs in October 2025, and SC 88 signed in December 2025.

“By advancing new exploration and supporting responsible upstream development, we are laying the groundwork for a steadier, more secure, and more sustainable energy system for the next generation,” Garin said.

Beyond petroleum SCs, the DOE has approved nine endorsements for renewable energy (RE) bidding and will offer hydropower, geothermal, and wind power projects in its open and competitive selection process (OCSP5).

According to the DOE, nine out of 15 letters of intent are eligible as pre-determined areas and will proceed to a more detailed evaluation. Among these approved endorsements are the 6.7-megawatt (MW) Guinoba-an No. 1, 2.90-MW Guinoba-an No. 2, and 8.3-MW Pacu-an hydropower projects.

The 25-MW Southern Leyte geothermal plant, as well as the Cabusao and San Isidro wind power projects, are also qualified for the new RE bid.