MILF seeks deferment of oil/gas exploration deals in Bangsamoro area

CAMP DARAPANAN, Maguindanao, Philippines—Pending a clearly defined wealth-sharing arrangement between the proposed Bangsamoro autonomous region and the central government, the Moro Islamic Liberation Front is asking that the bidding for and awarding of oil and gas exploration contracts in the region be put on hold.

MILF chief Murad Ebrahim particularly cited the areas within the Liguasan Marsh in Central Mindanao and the Sulu Sea.

“As a principle, we are not against exploitation of our natural resources, including oil and gas, provided that they redound to the benefit of our people and should be done in the proper time and conditions,” Murad said at a recent news conference.

Two weeks ago, the MILF and the national  government signed a preliminary Framework Agreement that provides, among other things, the creation of a self-governing entity with far greater political and economic powers than the existing Autonomous Region in Muslim Mindanao (ARMM).

The same entity is expected to replace the ARMM by 2016 in accordance with a Bangsamoro Basic Law to be passed by Congress and ratified by the affected populace.

The extent of autonomous powers and share in the exploitation of natural wealth of the region are still subject to negotiations, expected to be firmed up by the end of this year.

Murad said it would be wise for the government not to continue with the bidding of the two exploration blocks “until the wealth-sharing issue is fixed.”

In mid-2011, the Philippine Energy Contracting Round 4 offered to interested investors 15 blocks covering a total of some 100,339 square kilometers which are “mainly located in frontier regions.”

One energy exploration block offered is onshore, in the Cotabato Basin, covering around 456,000 hectares straddling the provinces of South Cotabato, North Cotabato, Davao del Sur, Maguindanao and Sultan Kudarat.

A document of the Department of Energy said “the estimated volume of the total risked recoverable resources, excluding the speculative (unmapped) resources, is around 202 million barrels of oil and 821 billion cubic feet of gas.”

Another exploration block offered is offshore, in the Sulu Sea, covering around 432,000 hectares with water depths ranging from 1,500 to 5,000 meters, according to the DOE.

Of the eight wells drilled within the Sulu Sea block, “five of these have significant oil and gas shows.” This block, the DOE said, holds around 209 million barrels of oil and 716 billion cubic feet of gas.

The DOE also said that three of four additional wells drilled adjacent to the block “have been declared as gas discoveries” with an estimated deposit of some 775 billion cubic feet.