DOE, BARMM award first coal exploration contract in region

Energy Secretary Raphael Lotilla (left) and Bangsamoro Minister for Environment, Natural Resources and Energy Akmad Brahim (right) show the copy of the coal operating contract awarded to Filipinas Systems, Inc. last Oct. 24 in Cotabato City. It is the first contract to exploit energy resources in the region. BARMM Chief Minister Ahod “Al Haj Murad” Ebrahim (center) witnessed the historic event. Photos courtesy of the BARMM Office of the Chief Minister

ILIGAN CITY, LANAO DEL NORTE, Philippines — The Department of Energy (DOE) and the Ministry of Environment, Natural Resources, and Energy (Menre) of the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) have jointly awarded the first coal operating contract (COC) in the region.

The agencies awarded the contract last Thursday to Filipinas Systems Inc. (FSI) to explore coal in a predetermined area in the Kapai and Tagoloan towns of Lanao del Sur.

This is the first energy contract involving the BARMM, which has a joint authority with the national government in the exploitation of such resources, as mandated by the Bangsamoro Organic Law (BOL) creating the BARMM.

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The historic event was held at the Office of the Chief Minister at the Bangsamoro Government Center in Cotabato City, witnessed by Chief Minister Ahod “Al Haj Murad” Ebrahim, Energy Secretary Raphael Lotilla, and Menre Minister Akmad Brahim.

Under the contract, FSI will invest some P19 million for its two-year exploration work program. Once the project reaches the development and production stages, FSI will provide P150,000 annually in scholarships to qualified individuals from the contract area as a form of support for the host local communities.

Historic event

In July last year, the DOE and Menre came up with a joint circular outlining the framework for the collaboration between the national and regional governments in the awarding of petroleum service contracts and COCs, in a bid to harness the energy potentials in the BARMM.

“The awarding of the first COC in BARMM is a landmark moment for both governments. It reflects our collective commitment to advancing energy development and resource management in the region, empowering the BARMM to play a key role in the country’s energy future,” Lotilla said.

“This partnership will not only foster energy independence for the Bangsamoro region but also create pathways for sustainable economic growth and development,” Lotilla added.

Under the BOL, the development of fossil fuels like petroleum, gas, and coal are jointly administered by the national and BARMM governments.

Renewable energy sources other than hydropower from Lake Lanao are within the BARMM’s jurisdiction.

The DOE said the national government is committed to assisting the BARMM in tapping its solar, wind, geothermal, and other renewable energy potentials.

Currently, the country imports 80 percent of its coal requirements, mostly from neighboring Indonesia.