The energy department has extended an invitation to both local and foreign investors to participate in bidding for eight pre-determined areas designated for oil and gas ventures.
These strategic locations, spanning the Northwest Palawan and Southern Cebu basins, Central Luzon, and the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), are at the forefront of the country’s push towards expanding its energy portfolio.
The opening of bids for these areas is scheduled for today, Monday, February 26, aligning with the launch of the 1st Conventional Energy Bid Round for BARMM and the 2024 Philippine Energy Bid Round.
In a statement issued by the Department of Energy (DOE), Secretary Raphael Lotilla stated that the launch of the bid rounds is another achievement for the current administration, particularly in the development of the BARMM.
In Northwest Palawan and Southern Cebu basins, two pre-determined areas (PDAs) with confirmed resources are designated for the development and production of petroleum. Additionally, two PDAs for native hydrogen exploration will be offered under the 2024 Philippine Bid Round in Central Luzon.
Four PDAs will be available for investment, exploration, development, and production of BARMM’s indigenous resources, in line with the mandates of the Intergovernmental Energy Board (IEB).
This initiative follows the landmark signing of the IEB Circular on the Joint Award of Petroleum Service Contracts (PSCs) and Coal Operating Contracts (COCs) in the BARMM area in July 2023.
“The resources identified in the BARMM area are enormous assets that we can fully develop. As we take another step forward in harnessing these assets, we move closer to realizing our aspirations for promoting economic growth, generating employment opportunities, and nurturing a thriving business landscape in the region,” Secretary Lotilla said.
The signing of the IEB Circular on July 6, 2023, regarding the Joint Award of Petroleum Service Contracts (PSCs) and Coal Operating Contracts (COCs) in the BARMM, brings into effect the guidelines set forth in Section 10, Article XIII of Republic Act No. 11054, also known as the Organic Law for the Bangsamoro Autonomous Region.
The legislation authorizes the collective granting of rights, privileges, and concessions for the exploration, development, and use of both uranium and fossil fuels like petroleum, natural gas, and coal within the Bangsamoro’s borders.
The Philippine Bid Round is a government-managed procedure that encourages oil and gas corporations to engage in a competitive bidding process for the exploration and development rights of specified territories within the nation. Aimed at streamlining oil and gas exploration, this program seeks to stimulate economic expansion and uphold responsible resource stewardship across the Philippines.
Lotilla said that acknowledging the nation’s considerable untapped potential for energy exploration, there’s a significant opportunity to bolster the country’s energy independence and stimulate economic advancement in areas harboring these resources.
“By leveraging these opportunities, we invite local and foreign investors to partner with us in achieving energy security and self-sufficiency for the region and the entire Philippines,” he said.
