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The Philippine government has approved two new petroleum service contracts aimed at accelerating domestic energy development, reviving idle resources, and opening new frontiers amid ongoing global fuel volatility.
The Department of Energy (DOE) confirmed that President Ferdinand R. Marcos Jr. signed Service Contract (SC) 89 for the redevelopment of the Alegria Oil and Gas Field in Cebu and SC 90 for the exploration of natural hydrogen resources in Leyte.
This move demonstrates a continued push to reduce reliance on imported fuels.
Alegria Field Set For Restart
SC 89, located onshore in southern Cebu and operated by Texcal Energy Mahato Inc., will bring the Alegria Oil and Gas Field back into operation after three years of inactivity. The DOE said the project is expected to contribute additional indigenous energy supply to Cebu and the broader Visayas region while generating employment and stimulating local economic activity.
Estimates place the field’s total oil resources at 27.93 million barrels, with approximately 3.35 million barrels considered recoverable, or about 12 percent of total reserves. Natural gas resources are projected at around 9.42 billion cubic feet, with 6.6 billion cubic feet deemed recoverable, which is equivalent to roughly 70 percent.
The revival of Alegria is positioned as part of a broader effort to maximize existing domestic resources as the country remains exposed to fluctuations in global fuel markets.
Emerging Hydrogen Resource
Meanwhile, SC 90 has been awarded to Matahio Energy Philippines in partnership with Ophiolite Energy to explore naturally occurring hydrogen in onshore Leyte. The project will focus on areas with ophiolite formations, which are considered favorable for hydrogen generation through serpentinization, a natural process in which water reacts with underground rocks to produce hydrogen gas.
The DOE said the initiative will assess whether hydrogen resources in the area can be developed commercially, signaling the government’s early move into alternative and potentially low-carbon energy sources.
The agency has previously identified at least nine prospective locations nationwide for natural hydrogen exploration, including areas in Luzon, Visayas, and Mindanao, underscoring growing interest in the resource as part of the country’s long-term energy mix.
Strengthening Energy Security
Energy Secretary Sharon S. Garin said the newly signed contracts reflect a dual-track strategy of revitalizing known reserves while pursuing frontier exploration.
“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,” Garin said.
She emphasized that expanding local energy production is critical as the Philippines remains vulnerable to external supply shocks, particularly amid geopolitical tensions affecting global fuel markets.
“At a time when the country remains exposed to global fuel market volatility…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.
Renewable Expansion
The latest approvals bring the total number of petroleum service contracts signed under the Marcos administration to 12, including earlier deals awarded between 2023 and 2025.
Beyond upstream oil and gas, the DOE is also advancing renewable energy development, with multiple projects lined up under its competitive selection process covering hydropower, geothermal, and wind resources.
Contractors under the petroleum service agreements are required to implement social development programs and provide scholarships during exploration phases, ensuring community participation alongside resource development.
The DOE said the combined efforts reflect a long-term strategy to build a more stable, diversified, and sustainable energy system, balancing immediate supply needs with future energy transitions.
Source:
https://tribune.net.ph/2026/04/07/govt-clears-cebu-leyte-energy-drills