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Marcos Administration Expands Domestic Energy Exploration with Two New Petroleum Service Contracts
Date published: Apr 7 2026 07:10 PM
MEDIA RELEASE
07 April 2026
Marcos Administration Expands Domestic Energy Exploration with Two New Petroleum Service Contracts
In line with the administration’s commitment to strengthen long-term energy security through the exploration, development, and production of indigenous energy resources, President Ferdinand R. Marcos Jr. has signed two new Petroleum Service Contracts (PSCs): one for the development of the Alegria Oil and Gas Field in Cebu, and another for the exploration of natural hydrogen resources in Leyte.
The signing brings to twelve (12) the total number of PSCs awarded under the Marcos Jr. Administration, reflecting the government’s sustained push to expand domestic energy development and reduce the country’s exposure to imported fuel dependence. This includes PSC 79, which was signed in August 2023 by then Energy Secretary Raphael P.M. Lotilla under the authority of the President, followed by eight (8) PSCs signed by the President in October 2025, and the 10th PSC, Service Contract No. 88, signed in December 2025.
Service Contract No. 89 (SC 89), located onshore in southern Cebu, covers the development and production of the Alegria Oil and Gas Field under the operatorship of Texcal Energy Mahato Inc. 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, and 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 about 12 percent—are considered recoverable. For natural gas, 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) has been awarded to Matahio Energy Philippines, in partnership with Ophiolite Energy, for the exploration of natural hydrogen resources in onshore Leyte. The project covers areas underlain by ophiolite formations, which are considered prospective for natural hydrogen generation through serpentinization. Serpentinization is a natural process where water reacts with certain rocks underground, producing hydrogen gas over time. These geological conditions make the area a promising site for assessing whether naturally occurring hydrogen may be present in commercially viable quantities.
Energy Secretary Sharon S. Garin said the awarding of the two PSCs reflects the administration’s clear direction of pursuing 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,” Secretary Garin said. “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 added 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,” the Secretary said. “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.”
Beyond investments in exploration and drilling activities, petroleum service contractors 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.
The awarding of these two new PSCs forms part of the administration’s broader agenda to strengthen domestic energy supply, expand indigenous resource development, and reinforce the country’s long-term energy resilience. Together with ongoing efforts to sustain existing production and pursue new resource opportunities, these projects support the government’s objective of securing a more reliable and self-reliant energy future for the nation. ###