Philippines awards eight PSCs for oil, gas and native hydrogen

President Ferdinand Marcos Jr. on Wednesday signed eight petroleum service contracts at Malacañang that open exploration for oil, gas and native hydrogen across the Sulu Sea, Cagayan, Cebu, northwest and east Palawan, and Central Luzon. The agreements, valued at about US$200 million over a seven year exploration period, mark the largest single batch of service contracts awarded in Philippine history and are intended to boost domestic energy production and reduce reliance on imports.

Marcos said the contracts aim to secure the country's energy future and shield ordinary Filipinos from rising global fuel prices, noting that the Philippines remains heavily dependent on imported petroleum. The government estimated imports accounted for roughly 99.7 percent of the country's fuel supply in 2024. Energy Secretary Garin said the awards reflect a push to embrace innovation and sustainability while reducing import dependence.

The contracts were awarded through the Department of Energy's Philippine Conventional Energy Contracting Program, which evaluated applicants for legal, technical and financial fitness. Contractors will begin geological and geophysical work, including seismic surveys...