September 30, 2023 | 12:00am
MANILA, Philippines — Investors from Middle East countries are keen on investing in oil and gas exploration in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), with their interest renewed by the country’s current investment landscape, according to the Department of Energy (DOE).
Energy Secretary Raphael Lotilla said their interest are mainly on the upstream segment, such as for natural gas exploration and development.
“As you know, the areas in the Sulu Sea are relatively underexplored. So there were previous explorations, but now, because of their greater confidence that the administration is welcoming to foreign investments, they have expressed interest now in doing exploration activities in the Sulu Sea area. This is offshore,” Lotilla said.
“So we will do our best to make sure that the foreign investors indeed find a welcoming investment climate in the country,” he said.
The DOE has noted of renewed confidence and strong interest in the Philippines’ upstream oil and gas sector following the government’s efforts to boost the country’s investment climate.
The agency is optimistic that the renewed and strong investor interest in the upstream oil and gas sector will continue as it assured players of sustained stability of legal framework and a level playing field.
“In the case of Qatar and the United Arab Emirates and with the Middle Eastern countries like Saudi Arabia, we would like them particularly to invest in the Bangsamoro region. Because while of course we are not limiting their investment interests in these areas, there is a natural affinity and there is great interest on their part to be able to help out in Bangsamoro region,” Lotilla said.
Lotilla said the DOE is looking forward to further deepening cooperation with these countries.
“We already have a number who have discussed with us and not yet at liberty to tell you which company, but definitely, there is a major company that is looking at opportunities again, especially in the offshore areas between Sulu and Mindanao,” the energy chief said.
“So it is therefore a very healthy indication that with the agreement between the national government and the Bangsamoro government, we are attracting more attention to the possibilities in that region,” Lotilla said.
President Marcos last July witnessed the signing of the DOE and BARMM’s Ministry of Environment, Natural Resources, and Energy of the Intergovernmental Energy Board circular on the joint award of petroleum service contracts and coal operating contracts.
The DOE said the circular would empower the national and Bangsamoro agencies of the government to jointly grant rights and concessions for the development and utilization of gas, oil, and coal within the jurisdictional extent of the Bangsamoro.
Further, the signed joint circular is seen as an important step towards progress in Mindanao, and possibly the establishment of another energy resource capital in the Philippines.