BARMM sees energy deal with DOE a game changer in region

COTABATO CITY, Philippines – In the Bangsamoro region lies a potential reservoir of wealth that could transform the region into a vibrant energy hub and bring in billions of pesos in revenue from oil, gas, and mineral exploration.

Officials of the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) said they see a recent agreement between the national and regional governments to open the predominantly Muslim region to natural gas exploration as a game changer.

BARMM Interior Minister Naguib Sinarimbo said they were drawing inspiration from Saudi Arabia, a desert nation that prospered because of its oil deposits, and were optimistic about the prospect of BARMM metamorphosing into a major economic player in the country.

Sinarimbo, who leads a technical working group for the exploration of the region’s natural gas reserves, said BARMM’s potential has caught the eye of foreign investors, with groups from Malaysia and the Middle East expressing keen interest in exploring the resource-rich Liguasan Marsh.

On July 6, the Department of Energy (DOE) and the BARMM Ministry of Natural Resources and Energy (MENRE) signed an agreement on the joint awards of petroleum service and coal operating contracts within the region.

The national government and BARMM agreed to jointly exercise power in granting rights, privileges, and concessions for the exploration, development, and use of fossil fuels such as petroleum, natural gas, and coal within the autonomous region.

Under the set-up, the revenue-sharing will go beyond mere processing fees paid by investors, where BARMM and the national government will split the proceeds evenly. 

“This is unprecedented; it’s the first time in the country’s history… It used to be exclusive to the central government only. This time, it’s 50/50 in terms of sharing,” said Sinarimbo.

He said the set-up would avoid a repeat of the situation in the Lanao area where the National Power Corporation (NAPOCOR) has been generating much of Mindanao’s hydroelectric power from Lake Lanao for years without Maranaos benefiting much from it.

Officials said the agreement marked an important step towards operationalizing an energy board in line with the Bangsamoro Organic Law (BOL) and the Comprehensive Agreement on the Bangsamoro (CAB).

BARMM Chief Minister Ahod Ebrahim said that as the region opens its doors to foreign investors interested in tapping into the region’s natural resources, the regional government would remain committed to protecting the environment and ensuring that the Bangsamoro people would benefit from the ventures.

Ebrahim said they will diligently monitor the activities of investors to safeguard indigenous communities from any harm or destruction. – Rappler.com