Government seeks bids for oil, gas exploration in Bicol

MANILA, Philippines — Confronted with the country’s heavy reliance on imported oil, the Marcos administration is seeking challengers for petroleum exploration in the Bicol Shelf Basin.

In a notice, the Department of Energy said interested bidders could submit an offer for a petroleum service contract in the nominated area covering 1.5 million hectares.

A pre-submission conference is scheduled on April 7, and bidders have until May 18 to file their applications for the petroleum block.

Challengers must also pay the corresponding application fee of P1 million.

Bid documents would be opened on the same day of the submission deadline, the DOE said.

Under the Oil Exploration and Development Act of 1972, the government is allowed to offer and promote prospective petroleum areas for award through auction or negotiation.

Last October, President Marcos awarded eight petroleum deals worth around $207 million to ramp up local energy production and reduce the country’s oil import dependence.

The contracts cover exploration areas across Cagayan, Cebu, northwest Palawan, east Palawan, Central Luzon and the Sulu Sea.

These also include the world’s first competitive bid round for native hydrogen alongside co-managed projects with the Bangsamoro Autonomous Region in Muslim Mindanao.

Following the award, contractors began their respective work programs over a seven-year exploration period, which included geological and geophysical studies, seismic surveys and drilling activities.

Currently, the Philippines is battling an energy emergency triggered by the US-Israel war with Iran, which has disrupted oil supply flows in the Middle East.

As a net importer of oil, the Philippines is directly feeling the impact, experiencing a supply crunch and consecutive weekly increases in fuel prices.