DOE Commences Bid Solicitation for Coal and Petroleum Exploration in BARRM

The Department of Energy (DOE), in the collaboration with the Ministry of Environment, Natural Resources, and Energy (MENRE) of the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), has initiated the inaugural Conventional Energy Bid Round for BARMM alongside the 2024 Philippine Bid Round.

In accordance with the guidelines set by the Intergovernmental Energy Board (IEB), four Pre-Determined Areas (PDAs) have been earmarked for investment, exploration, development, and production of coal and petroleum resources indigenous to the region. The identification of these resources in the BARMM area represents significant potential for comprehensive development. By taking this step towards harnessing these assets, we draw closer to fulfilling our aspirations of fostering economic growth, creating employment opportunities, and fostering a robust business environment within the region.

The sole PDA designated for coal exploration is located in Kapai and Tagoloan, Lanao del Sur, covering a vast area of 14,856 hectares.

Regarding petroleum exploration, three Pre-Determined Areas (PDAs) have been identified:

PDA-BP-1, encompassing Cotabato City and the provinces of Lanao del Sur and Maguindanao del Norte, situated within the Cotabato Basin, spans nearly 229,240 hectares. Currently, 14 wells have been drilled in this area, with 10 of them yielding discoveries of oil and gas.

PDA-BP-2 and PDA-BP-3 are located in the Sulu Sea Basin, covering expansive areas of 780,000 hectares and 532,038 hectares, respectively. Within PDA-BP-2, six wells have been drilled, leading to three gas discoveries and one revealing both oil and gas. For PDA-BP-3, seven wells have been drilled, with four exhibiting gas shows and one demonstrating the presence of both oil and gas.

In the scope of the 2024 Philippine Bid Round, two Pre-Determined Areas (PDAs) have been made available for petroleum development and production. Northwest Palawan, situated in Busuanga Island, where five wells, including the Calauit and Calauit South oil fields, have been identified. These fields hold reserves ranging from 5.5 to 6.1 million barrels of oil (MMbbls), with studies indicating a potential additional reserve of 0.1 to 1.8 MMbbls of oil. Southern Cebu, specifically PDA-DP-2, which has been extensively explored and holds reserves estimated at 26.3 to 31.9 MMbbls of oil. Over the period from 2018 to 2023, approximately 19,791.26 barrels of crude oil were produced from six wells in this area.

Additionally, a PDA dedicated to native hydrogen exploration has been made available, located in the northern part of the Zambales Ophiolite Complex and the western portion of Central Luzon.