DOE Aims to Boost Energy Investments in BARMM with Upcoming Auction Round
Key Ideas
- Department of Energy (DOE) to accept tenders for hydrogen investments and petroleum ventures in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) and other regions.
- Auction round to include three pre-determined areas (PDAs) in BARMM, two PDAs for native hydrogen exploration in Luzon, and stranded petroleum reserves in Calauit field and Alegria field.
- Collaboration between DOE and Ministry of Environment, Natural Resources and Energy (MENRE) in BARMM for bid acceptance and contract awards.
- Upstream petroleum and hydrogen projects auction round aims to boost energy investments and development in the country's oil and gas sector.
The Department of Energy (DOE) in the Philippines is gearing up for an auction round to boost energy investments, particularly in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM). The upcoming bid activity will offer three pre-determined areas (PDAs) in BARMM and two PDAs for native hydrogen exploration in Luzon. Additionally, petroleum blocks in Calauit field in Northwest Palawan and Alegria field in Cebu will be auctioned. The DOE and the Ministry of Environment, Natural Resources and Energy in BARMM will collaborate for bid acceptance and contract awards.
Energy Undersecretary Alessandro O. Sales highlighted the strong collaboration between the national government and the Bangsamoro government in awarding petroleum service contracts. The auction is aimed at partnering with qualified applicants for the development of BARMM's energy resources. The submissions for applications are scheduled for August 27, with a thorough evaluation process to follow.
The planned hydrogen project sites in the country include the ophiolite complex in Zambales and Pangasinan in Northern Luzon. The Calauit petroleum field is expected to have a reserve potential of 5.5 to 6.1 million barrels of oil, with additional prospects for up to 1.8 million oil barrels. Similarly, the Alegria field in Cebu could yield 26.3 to 31.9 million barrels of oil, with gas production potential awaiting confirmation.
The initiative aims to revitalize the country's upstream oil and gas sector, which has seen a lack of exploration and drilling activities for over a decade. The Marcos administration is aggressively pushing for fresh capital inflow into the sector to drive energy development and investments in the Philippines.