SINGAPORE, 9 May 2025 – The Philippine Department of Energy (DOE) reaffirmed its commitment to revitalizing the country’s petroleum sector and maximizing indigenous energy resources at the Farmout and Opportunities Forum of the 2025 Southeast Asia Petroleum Exploration (SEAPEX) Society Exploration Conference, held from 06 to 09 May 2025 in Singapore.

DOE Undersecretary Alessandro O. Sales unveiled key regulatory reforms and new investment incentives aimed at revitalizing the country’s upstream petroleum sector and maximizing the use of local natural gas. In his address, Undersecretary Sales emphasized the key policy initiatives adopted by the Philippines since the 2023 SEAPEX Forum, such as the data classification reforms which enabled transparency and investor access to energy data, inclusion of native hydrogen under the Philippine petroleum regulatory framework, guidelines for Development and Production Contracts (DPCs) which target smaller, previously discovered but undeveloped fields, and revival of the Multi-Client Business Model aimed at addressing the country’s need for updated geoscientific data through partnerships with data service providers.

Undersecretary Sales also drew attention to complementary developments in the downstream sector, including the passage of the Philippine Natural Gas Development Act in 2024. The law mandates the prioritization of indigenous natural gas for domestic consumption, particularly for gas-fired power plants, ahead of imported liquefied natural gas (LNG). It empowers the DOE to set minimum utilization levels and extends fiscal incentives to power generated from local gas, including exemptions from value-added tax – aligning downstream incentives with upstream efforts.

To further spur exploration, Undersecretary Sales announced a forthcoming DOE circular introducing stackable special allowances meant to incentivize exploration in high-risk or underdeveloped areas. “These incentives are designed to reward those willing to venture into new and challenging areas,” Undersecretary Sales said, emphasizing that most of the allowances can be stacked, providing an attractive fiscal environment for investors.

Undersecretary Sales ended his pitch by highlighting the urgency of supporting upstream development, especially as the Malampaya gas field, currently supplying only 1.3 GW, falls short of meeting the national demand of 4.5 GW in natural gas-powered electricity. A total of 3.2 gigawatts of power generation capacity represent a strategic opportunity for upstream investors. With regulatory clarity, market assurance, and fiscal incentives now in place, the Philippines hopes to welcome bold and visionary partners.

Interested investors wishing to know more about the petroleum exploration and production opportunities in the Philippines were able to visit the DOE’s exhibit during the four-day conference. (END)