By Joann Villanueva | Philippine News Agency
The government’s push for long-term energy security gained momentum following the signing of two new Petroleum Service Contracts (PSCs) covering areas in the Visayas.
In a news release on Tuesday, the Department of Energy (DOE) said President Ferdinand R. Marcos Jr. approved the PSCs for the development of the Alegria Oil and Gas Field in Cebu and the exploration of natural hydrogen resources in Leyte.
The DOE said the latest deals bring to 12 the total SCs signed under the current administration, “reflecting the government’s sustained push to expand domestic energy development and reduce the country’s exposure to imported fuel dependence.”
Service Contract No. 89 (SC 89), located onshore in southern Cebu, covers the development and production of the Alegria Oil and Gas Field under Texcal Energy Mahato Inc. It aims to restart operations after three years of dormancy.
SC 89 “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,” the DOE said.
SC 89 is estimated to hold 27.93 million barrels of oil, with about 12%, or 3.35 million barrels, 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,” the DOE said.
Meanwhile, Service Contract No. 90 (SC 90), awarded to Matahio Energy Philippines in partnership with Ophiolite Energy, targets natural hydrogen exploration in onshore Leyte.
The DOE said the project will study ophiolite formations, “which are considered prospective for natural hydrogen generation through serpentinization,” a natural process in which water reacts with underground rocks to produce hydrogen gas over time.
It added that “these geological conditions make the area a promising site for assessing whether naturally occurring hydrogen may be present in commercially viable quantities.”
“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,” DOE Secretary Sharon Garin said.
The DOE is also exploring native hydrogen as a potential energy source and earlier identified nine prospective areas across the country, including sites in Aurora, Zambales, Bulacan, Palawan, and parts of Bicol, Leyte, Mindanao, and the Zamboanga-Sulu region.
“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,” Garin said. (PNA)
