As the country looks to find more local energy sources to strengthen its long-term security.
Recently, President Ferdinand Marcos, Jr. signed two new Petroleum Service Contracts (PSCs). One concerns the development of the Alegria Oil and Gas Field in Cebu, while the other is for the exploration of natural hydrogen resources in Leyte.
Under Service Contract No. 89 (SC 89), the development and production of the Alegria Oil and Gas Field, located onshore in southern Cebu, has been approved under the the the operatorship of Texcal Energy Mahato, Inc.
According to the Department of Energy (DOE), the project seeks to restart operations in the field after three years of dormancy and is expected to help stimulate local economic activity, create employment opportunities.
Moreover, it will also contribute additional indigenous energy supply for Cebu and the wider Visayas region.
Initial estimates indicate that the Alegria field contains around 27.93 million barrels of oil in place, of which approximately 3.35 million barrels (or around 12 percent) are considered recoverable.
As for natural gas, the “recoverable resources” are estimated at 6.6 billion cubic feet, equivalent to nearly 70 percent of the field’s total gas reserves, which were placed at around 9.42 billion cubic feet.
Meanwhile, Service Contract No. 90 (SC 90) was awarded to Matahio Energy Philippines, in partnership with Ophiolite Energy.
This one will see the exploration of natural hydrogen resources in onshore Leyte, with the project covering areas underlain by ophiolite formations—considered prospective for natural hydrogen generation through serpentinization, which is a natural process where water reacts with certain rocks underground, producing hydrogen gas over time.
These geological conditions, the DOE told, make the area a promising site for assessing whether naturally occurring hydrogen may be present in commercially viable quantities.
Energy Secretary Sharon Garin noted that the awarding of the two PSCs is part of the plan to pursud a more secure and self-reliant energy future through the responsible development of domestic resources.
“These Petroleum Service Contracts reflect our determination to move indigenous energy development forward, both by revitalizing known resources and by opening pathways for frontier exploration,” and added that at present, the country remains exposed to global fuel market volatility brought by the developments in the Middle East.
Garin also said that the government’s energy strategy must continue to balance near-term supply requirements with long-term resource development. “Our task is not only to respond to present energy needs, but to prepare decisively for the future.”
“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,” she added.
The two contracts brings the total number of PSCs awarded under the current administration to 12.
Beyond investments in exploration and drilling activities, petroleum service contractors under the deal are also required to provide scholarship assistance during the exploration phase and implement social development programs during the production stage.
“These measures are intended to help ensure that host communities directly benefit from petroleum development projects,” noted the energy department.