MANILA – Two newly signed Petroleum Service Contracts (PSCs) in the Visayas are expected to support the country’s push for energy self-sufficiency, following approval from President Ferdinand R. Marcos Jr., the Department of Energy (DOE) said Tuesday.
The agreements cover the redevelopment of the Alegria Oil and Gas Field in Cebu and an exploratory project for natural hydrogen in Leyte, bringing the total number of service contracts under the current administration to 12.
According to the DOE, the contracts highlight the government’s ongoing strategy to boost domestic energy production while lessening dependence on imported fuel.
Service Contract No. 89 (SC 89), located in southern Cebu, has been awarded to Texcal Energy Mahato Inc. and will focus on restarting operations at the Alegria Oil and Gas Field after a three-year pause.
The DOE said the project is expected to generate employment, revitalize local economic activity, and enhance the supply of indigenous energy for Cebu and nearby Visayas provinces.
Resource estimates indicate that the field holds approximately 27.93 million barrels of oil, with about 3.35 million barrels deemed recoverable. In terms of natural gas, recoverable reserves are estimated at 6.6 billion cubic feet out of a total of 9.42 billion cubic feet.
On the other hand, Service Contract No. 90 (SC 90) was awarded to Matahio Energy Philippines in collaboration with Ophiolite Energy to conduct natural hydrogen exploration in Leyte.
The DOE explained that the project will focus on ophiolite formations—rock structures considered favorable for hydrogen generation through serpentinization, a natural process involving the interaction of water with underground rocks over long periods.
The agency noted that Leyte’s geological characteristics make it a strong candidate for assessing whether naturally occurring hydrogen can be found in commercially viable amounts.
“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,” Energy Secretary Sharon Garin said.
She also emphasized that the government continues to explore natural hydrogen as a potential energy source, with several prospective sites already identified across the Philippines, including areas in Luzon, Visayas, and Mindanao.
Garin added that expanding domestic energy sources is vital in mitigating the impact of global oil price volatility driven by geopolitical developments, particularly in the Middle East, and in ensuring a more stable and resilient energy future for the country.
ia/xf
