By Sheldeen Joy Talavera, Reporter
THE upstream oil and gas sector is starting the 12 months on an optimistic note, with industry players set to start their work programs after securing recent petroleum service contracts from the federal government.
“The 12 months 2026 marks a brand new era for the Philippines’ upstream oil and gas industry — one among renewed exploration, energy innovation, and investor confidence,” Edgar Benedict C. Cutiongco, president of the Philippine Petroleum Association, told BusinessWorld.
He said newly awarded onshore and offshore petroleum service contracts are expected to start their approved exploration and development activities this 12 months, “bringing in vital investments and reinforcing the country’s role in regional energy security.”
Last 12 months, the federal government awarded eight recent petroleum service contracts, representing potential investments of about $207 million over seven years of exploration.
Areas with identified potential petroleum and hydrogen resources include the Sulu Sea, Cagayan, Cebu, Northwestern Palawan, Eastern Palawan, and Central Luzon.
Under their service contracts, corporations may undertake work programs that include geological and geophysical studies, seismic surveys, and drilling activities, as appropriate, to evaluate resource potential.
The federal government has also recently granted a brand new contract to PXP Energy Corp. and its partners, allowing them to proceed production on the Galoc Oil Field off northwest Palawan.
The brand new contract replaces Service Contract 14C-1, which expired on Dec. 17 and covered the exploration, development, and production of petroleum resources within the Galoc field.
For the reason that issuance of Presidential Decree (PD) No. 87 in 1972, which promotes the invention and development of the country’s indigenous petroleum resources, a complete of 65 million barrels of oil have been discovered from various oil fields, Mr. Cutiongco said.
“PD 87 stays a cornerstone of fiscal stability for the upstream sector. Any future adjustments to PD 87 will probably be fastidiously considered to reinforce incentives and maintain the Philippines’ competitiveness as an investment destination,” he said.
He added that the awarding of the event and production petroleum service contract for the Galoc field ensures that remaining reserves are developed and resources should not stranded.
“Fiscal stability stays the bedrock of growth. Strong interest in recent bidding rounds signals renewed confidence, whilst global risks persist,” Mr. Cutiongco said. “The shift from globalization to regionalism will define energy strategies — and the Philippines is prepared.”