DAVAO CITY—A multibillion peso-investment from two parties are awaiting notices to proceed with exploring for petroleum and natural gas deposits in the Liguasan Marsh and Sulu Sea, once the national government and the Bangsamoro autonomous government finalize the harmonization of rules and jurisdiction on mineral extraction within the Bangsamoro territory.

At least one local company, the Esmaulana Global Ventures Co. Inc. (EGVI) has filed with the Bangsamoro Board of Investments (BOI) a petroleum investment project in the Liguasan Marsh area and the Sulu Basin, worth P998 million.

Another project, a bigger one, comes from the Australia-headquartered Energy World Corp, which has applied for natural gas exploration in the Sulu Sea that would cost $1 billion.

Lawyer Ishak Mastura said the Bangsamoro BOI has granted provisional registration last month to EGVI. However, Mastura said the agency he heads has "held in abeyance" the granting of service contract to the company,

A service contract would grant authority to a company to proceed with oil and mineral exploration. But Mastura said the Department of Energy (DOE) has already written the company that its service contract was yet to be granted pending the final outcome of the DOE-led discussion between representatives of the Bangsamoro Autonomous Region in Muslim Mindanao (Barmm) and the national government.

He said he was unaware with the application of Energy World Corp. but suggested the company also file its registration.

Mastura told the BusinessMirror "it would be good if they will start the process of registration with us considering that aside from the fiscal incentives, the Bangsamoro Organic Law (BOL) provides preferential rights to bona fide residents of Barmm for natural resources, including petroleum, investments."

Intergovernmental discussion

MASTURA said the DOE explained to EGVI that the awarding of the service contracts for Barmm areas were held in abeyance since the modality of processing and awarding of service contracts in the Barmm for petroleum investments still have to be worked out in the Intergovernmental Relations Body, as established under the BOL.

EGVI's proposed investment project covers the Liguasan Marsh and the Sulu Sea but the areas that fall within the Barmm jurisdiction "are subject to the joint determination by the Barmm regional government and the national government," he added.

"Nevertheless, EGVI registered with the RBOI-Barmm subject to the final approval of a service contract by the President in order that they can already prepare, recruit and train manpower, as well as, obtain capital equipment for future exploration, utilization and development of their target areas in the Barmm," according to Mastura.

He, however, said that the registration of the investment project "doesn't mean that EGVI can already proceed with their exploration, development and utilization, but the registration of their investment project could mean that they are recognized as a company operating in the Barmm area, since the [BOL] provides preference to Barmm residents in the exploitation of its natural resources, particularly petroleum."

No fiscal incentives were given to EGVI by the Bangsamoro BOI because petroleum companies have their own terms and conditions under a service contract, according to Mastura.

"However, EGVI can, in the future, apply for reduced duties and taxes for importation of capital equipment should their oil and gas venture progress during their talks with the Barmm regional government and the national government."

Amildasa D. Annil, facilitator and coordinator of Energy World International Ltd., also said that its application in 2017 for an exploration of natural gas deposits in the Sulu area remained on hold at the DOE. Annil said discussions on harmonizing the laws were still going on with the Barmm on oil and other mineral exploration.

Annil said that Energy World Corp. has applied for exploration of the natural gas deposits in Lugus Island, about 32 miles southwest off the provincial capital of Jolo, and in Pearl Bank, another islet farther west of Lugus

Graham Elliott, executive director of the company, estimated the project would cost about $1 billion but needs between $300 million to $400 million to start it.

Nonetheless, Elliott expressed confidence the company has equity investors "to join us as soon as we have the permission from the DOE."

"I am also confident of the support from the Development Bank of the Philippines due to its impact to employment and the other investment that would be encouraged in this region, the Barmm, that really needed investments," he said during an online briefing with business reporters here last April.

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