Offshore block in south Palawan offered to petroleum explorers

THE Department of Energy (DoE) said it is offering an offshore area in the Southern Palawan Basin for petroleum exploration.

Demujin F. Antiporda, director of the DoE’s Energy Resource Development Bureau, told BusinessWorld, that the potential service contract covers about 500,000 hectares.

Mr. Antiporda said the nominated area is the 15^th and offered for exploration under the Philippine Conventional Energy Contracting Program.

The DoE has scheduled a pre-challenge conference on Feb. 2. Interested parties will have 60 days to submit proposals before the bids are opened on March 16.

According to a 2023 department circular, three modes of awarding petroleum service contracts are available: nomination of an area of interest, offering of pre-determined areas, and direct negotiation.

Mr. Antiporda said the DoE has endorsed four contracts for approval by President Ferdinand R. Marcos, Jr.

The hydrogen contracts cover 212,105 hectares in Western Luzon and 494,041 hectares in onshore blocks in Leyte.

The DoE also awarded two petroleum service contracts covering 103,034 hectares in the Northwest Palawan Basin and 58,683 hectares in the Visayas Basin.

In 2025, the government awarded petroleum and hydrogen service contracts for exploration in the Sulu Sea, Cagayan, Cebu, Northwest Palawan, Eastern Palawan, and Central Luzon.

Companies with service contracts can embark on their work programs, which include geological and geophysical studies, seismic surveys, and drilling activities, as appropriate, to assess the potential of the resource.

Earlier this year, the government also awarded a fresh petroleum service contract to PXP Energy Corp. and its partners to continue production at the Galoc Oil Field off northwest Palawan. —  Sheldeen Joy Talavera