Marcos: Joint award of petroleum service contracts in BARMM crucial for energy supply

President Ferdinand "Bongbong" Marcos Jr. said Thursday that the signing of the circular on the joint award of petroleum service contracts in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) is crucial for ensuring the development of energy resources.

"Considering the challenges of the depleting Malampaya reservoir and volatile fossil fuels prices, it is crucial to take this decisive action, reigniting petroleum exploration and fostering the development of indigenous energy resources," Marcos said in his speech in Malacañang.

"Ensuring security and self-sufficiency of our nation’s energy supply is not an option. It is an imperative, a solemn duty to our people, our nation and future generations," he added.

Marcos emphasized that the government is aware that Bangsamoro is part of the development process of the country.

The President witnessed the signing of the Joint Award of Petroleum Service Contracts and Coal Operating Contracts in the BARMM between the Department of Energy and the Ministry of Environment, Natural Resources, and Energy.

According to the DOE, the IEB Circular operationalizes the provision in Section 10, Article XIlI 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."

This aims to facilitate the growth of the energy sector and attract foreign investments in the BARMM.

Marcos said the reserves that have been identified in the area have been considered as enormous assets that we have been unable to exploit, not only for the Philippines but certainly for the autonomous region.

"And it was not an easy process, it took a great deal of hard work from both sides from the national government and certainly from our transition authority in the Bangsamoro autonomous region," Marcos said.

"I am very very happy that we have arrived at this day so we begin to exploit the richness that truly belong to the Autonomous Region [in] Muslim Mindanao and certainly to the national government," he added.

Marcos stressed that by harnessing the enormous energy potential within BARMM, the country will reduce reliance on external sources and mitigate the detrimental impacts of price fluctuations.

The DOE said the framework would outline the requisite requirements, procedures, and standards for companies seeking to apply for and operate PCs and COs and ensure that exploration and development activities will adhere to stringent rules and regulations, and best practices.

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, the DOE said.

It added that for coal contracts, an applicant must be a corporation or partnership with at least 60% 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. — Anna Felicia Bajo/RSJ, GMA Integrated News