The Department of Energy (DOE) said the Cabinet legal cluster concluded that energy service contracts that are affected by a ruling of the Supreme Court in 2015 can be considered valid again if re-submitted and signed by incumbent President Ferdinand Marcos Jr.
DOE Secretary Raphael Lotilla said the president must personally sign service contracts in order to be valid but he did not elaborate.

“The legal cluster concluded that incumbent president Marcos, may at his option, approve and sign service contracts that remain effective and were issued since the 1987 Constitution was entered into force. This will be subject to consultation with private service contractors on whether they will be amenable to this re-submission for the president’s approval and signing of energy contracts. We hope to move forward on this as well with the private sector,” Lotilla said.
In 2015, the Supreme Court voided the award of Service Contract 46 for the Japan Petroleum Exploration Co. Ltd. to explore and drill oil at the Tañon Strait in Visayas citing the contract as invalid since only former DOE Secretary Vince Perez was the signatory and not included former president Gloria Macapagal-Arroyo.
The decision was made retroactive and affected all other service contracts.
Lotilla said up until last year, the only energy exploration contract ever signed by a president was Service Contract 38 which is the Malampaya signed by former president Corazon Aquino.
The DOE said this development should not be misconstrued as changing the rules in the middle of a contract but should be considered as a way to “stabilize” the legal framework where contract holders operate.
“For as long as we do not address this, there will be legal uncertainty on whether or not their service contracts are valid or not,” Lotilla said.
DOE) has created an advisory panel composed of private sector legal experts and led by two former chief justices that will advise the agency on energy policy recommendations.
Lotilla said i the panel, led by Artemio Panganiban and Renato Puno, will ensure recommendations to the President and Congress are fully grounded on the Constitution.
Lotilla said the DOE is bent on resolving pending legal issues in the energy sector to attract more investments.