Bangsamoro gov’t, DoE sign accord on energy resource development

A VIEW of the northern side of the Liguasan Delta that straddles several provinces in Mindanao. Surveys in the 1990s showed that the largest volume of natural gas deposits in the delta are in marshes within the Bangsamoro province of Maguindanao del Sur. — JOHN UNSON

THE DEPARTMENT of Energy (DoE) on Thursday signed an agreement with the Bangsamoro Ministry of Environment, Natural Resources, and Energy (MENRE) to facilitate the development of the power sector in the southern region.

“The successful establishment of this IEB (Intergovernmental Energy Board) Circular holds immense potential. It will not only contribute to the energy security of the country but also unlock vast opportunities for economic growth in the Bangsamoro Autonomous Region,” Energy Secretary Raphael P.M. Lotilla said in a statement following the signing ceremony held in Malacañang.

The Department of Energy said this IEB circular enforces the provision of Republic Act No. 11054 or the Bangsamoro Organic Law 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.”

This will allow the growth of the energy sector by unlocking foreign investment opportunities in the region, the DoE said.

The circular opens the application process for petroleum service contracts and coal operating contracts within the Bangsamoro Autonomous Region in Muslim Mindanao.

The framework also provides the requirements, procedures and standards for companies seeking to apply for and operate such service contracts, the DoE added.

For petroleum contracts, an applicant may be any local or foreign individual company or group of companies forming a consortium and authorized to engage in petroleum exploration and development.

For coal contracts, the DoE said an applicant must be a corporation or partnership that is at least 60% Filipino-owned and is registered with the Securities and Exchange Commission.

Mr. Lotilla noted that the development of the region’s energy sector will help accelerate sustainable growth in the Bangsamoro region and generate employment opportunities.

“Overall, this significant progress represents a crucial step forward in ensuring the responsible utilization of energy resources and advancing the collective goals of both governments, the National and Bangsamoro Governments, towards a prosperous and sustainable future,” the DoE said. — Ashley Erika O. Jose