MANILA—The Philippines and Israeli firm Ratio Petroleum will sign an oil exploration deal during President Rodrigo Duterte’s visit to Israel, the Palace said Tuesday.

Presidential Spokesperson Harry Roque said the deal will be under the fifth round of the Philippine Energy Contracting Round (PECR-5) circular.

Roque said the exploration deal will cover an area east of Palawan. The deal is aimed at providing energy security for Filipinos, he added.

According to the energy department, Ratio Petroleum submitted bids and qualified for Area 4, a 416,000-hectare area in East Palawan.

The PECR-5 circular, issued under the previous administration, “reiterates the government’s promotion of the exploration, development, and production of the country’s indigenous petroleum and coal resources through a transparent and competitive system for awarding service and operating contracts with local and foreign investors,” according to the energy department.

Aside from the Israeli firm, local company Colossal Petroleum also passed the qualifying stage for PECR-5.

Colossal Petroleum qualified for the 576,000-hectare Area 5 in East Palawan and 468,000-hectare Area 7 in Recto Bank.

The Philippines is now racing to tap oil resources as the Malampaya natural gas field off Palawan can only supply gas up to 2029.