SKLOGC to explore, develop Liguasan Marsh

MANILA, Philippines — The Department of Energy (DOE) has awarded a service contract to Mindanao-based exploration firm SK Liguasan Oil and Gas Corp. (SKLOGC) to explore and develop the Cotabato Basin, which covers the rich Liguasan Marsh.

Energy Secretary Alfonso Cusi said reviving the country’s upstream sector is not only in the West Philippine Sea, but also in Liguasan Marsh in Mindanao.

“We already awarded that service contract. So, the work program is being done and we will continue,” he said.

Last month, the DOE was authorized by the Office of the President to proceed with the awarding of a petroleum service contract (PSC) to SKLOGC for Nominated Area 9 under the Philippine Conventional Energy Contracting Program (PCECP).

This authority is hinged on SKLOGC’s submission of “an undertaking stating, among others, that it shall abide by the final decision of the Supreme Court relative to the tax assumption provisions of other existing PSCs.”

Area 9 is located in the provinces of Sultan Kudarat and South Cotabato, which has oil and natural gas prospects.

On its website, SKLOGC said Area 9 has the potential to contain 3.4 trillion cubic feet (TCF) of natural gas and 4.8 billion barrels (BBL) of crude oil.

“By winning the Area 9 PCECP bid, SKLOGC is committed to fulfill its exploration obligation to DOE in seven years,” the company said.

The Liguasan Marsh covers 2,200 hectares spanning the provinces of Cotabato, Maguindanao and Sultan Kudarat, of which 300 square kilometers are classified as protected wetland and bird sanctuary. It is said to have billions of cubic feet of gas and is rich in oil deposits.

Earlier, state-run Philippine National Oil Co.-Exploration Corp. (PNOC-EC) expressed interest in exploring the Liguasan Marsh through a partnership.

In 2018, President Duterte said the government would not claim the untapped oil and gas reserves in Maguindanao as it belongs to the Moro people.

Under the Petroleum Act of 1949, the government has a share of 60 percent in royalties from extraction activities.

A year later, Duterte reiterated that the Moro people could exploit the resources in the region under the Bangsamoro Organic Law, including the Liguasan Marsh.

The Liguasan Marsh was excluded in DOE’s Philippine Energy Contracting Round held in 2012 since it was declared as a protected area.

In 1979, about 30,000 hectares of the marsh was declared a Game Refuge and Bird Sanctuary, with an inventory carried out to ensure the preservation of wildlife and aquatic resources.