Philippines expands energy landscape, oil exploration investment enters a new chapter

In early 2026, positive signals emerged from the upstream oil and gas industry in the Philippines. The eight new oil service contracts awarded by the government last year are gradually being implemented, marking the country’s accelerated efforts to expand its energy landscape.

According to the latest publicly available information, these new contracts are expected to attract approximately $207 million in potential investments over the next seven years. Edgar Benedict C. Cutiongco, President of the Philippine Petroleum Association, stated in an interview that this round of contract awards sends a clear industry signal—exploration enthusiasm has been reignited, and investor confidence in the domestic resource prospects is recovering.

Distribution of Oil Resource Potential and Development Priorities

The areas granted exploration rights this round cover key oil and gas accumulation zones across the Philippines. Multiple offshore and onshore blocks, including the Sulu Sea, Cagayan, Cebu, Northwestern Palawan, Eastern Palawan, and Central Luzon, have been included in the new exploration scope. According to contract terms, operators will be authorized to carry out comprehensive exploration and development activities, including geophysical surveys, seismic data acquisition, and exploration drilling.

Notably, the government recently awarded a new service contract to PXP Energy and its partners for the Galoc oil field, succeeding the contract 14C-1 that expired at the end of last year. This new contract covers the entire exploration, development, and production cycle of the oil field, ensuring continuous commercial development of remaining reserves.

Building Industry Confidence through Policy Stability

The continuity of energy policies in the Philippines creates favorable conditions for long-term investment. Since Presidential Decree No. 87 was issued in 1972, the country has discovered a total of 65 million barrels of oil across various fields, establishing a stable framework for exploration and extraction. Cutiongco emphasized that this policy document remains the foundation for the fiscal sustainability of the upstream oil and gas industry, and any future adjustments will aim to strengthen industry incentives and maintain the Philippines’ competitiveness as an investment destination.

Regional Opportunities in the Global Energy Landscape

Amid ongoing volatility in the international energy market, decision-makers in the Philippines are strengthening the country’s position within the regional energy security framework. Cutiongco pointed out that the current trend of globalization shifting toward regionalism will redefine the energy strategic landscape, and the Philippines is prepared to respond to this transition. The number of newly awarded oil service contracts and the scale of investment indicate growing recognition of the country’s energy future among industry participants.

The stability of fiscal policies remains a key factor driving industry growth, even as external risks persist. The active participation of applicants in this bidding process further confirms the market’s reassessment of the prospects for Philippine oil and natural gas.