President Ferdinand Marcos Jr. on Thursday stressed the need to ensure the security and self-sufficiency of the country’s energy supply during the joint award of a petroleum service and coal operating contracts in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) in Malacanang.
Joey Razon
The Department of Energy (DOE) and the Ministry of Environment, Natural Resources and Energy of the BARMM signed an intergovernmental energy board (IEB) circular on the joint contracts
The President, during the contract signing, said that this endeavor will pave the way for establishing another energy resource in BARMM.
The President added that with the circular, BARMM will be a massive part of the development process of the Philippines.
The IEB circular operationalizes the provision of Section 10, Article XIII of Republic Act No. 11054 or the Organic Law for the Bangsamoro Autonomous Region to jointly grant rights, privileges, and concessions for the exploration, development, and utilization of uranium and fossil fuels such as petroleum, natural gas, and coal within the territorial jurisdiction of the Bangsamoro.
According to DOE Secretary Raphael Lotilla, the circular will empower the national and Bangsamoro agencies to jointly grant rights, and concessions for the development and utilization of indigenous and conventional energy sources within the jurisdiction of the Bangsamoro region.
BARMM Chief Minister Ahod Ebrahim said the initiative shows the unwavering commitment of the Philippine government and the BARMM to work together to sustain the dividends of the peace process.
The Oil Exploration and Development Act allows the government to indirectly undertake the exploration and production of the country’s indigenous petroleum resources through Petroleum Service Contracts.
The Coal Development Act, on the other hand, also allows the government to undertake the exploration, development, and production of the country’s indigenous coal resources through Coal Operating Contracts.
Once implemented, the IEB circular will kickstart the application process for PSCs and COCs in the BARMM. “This is an important step towards progress in Mindanao, and possibly the establishment of another energy resource capital in the Philippines,” Lotilla said.
The circular aims to facilitate the growth of the energy sector and attract foreign investments in the region. It also outlines the requisite requirements, procedures and standards for companies seeking to apply for and operate PSCs and COCs and ensure that exploration and development activities will adhere to stringent rules and regulations and best practices.
It states that for petroleum contracts, an applicant may be any local/foreign individual company or group of companies forming a joint venture/consortium, organized or authorized for the purpose of engaging in petroleum exploration and development.
It says that for coal contracts, an applicant should be a corporation or partnership with at least 60-percent Filipino-owned capital and duly registered with the Securities and Exchange Commission, or a cooperative organized and authorized for the purpose of engaging in coal exploration and development.