DOE, Argao, Sibonga ink MOU on oil explorations

CEBU, Philippines – The Department of Energy and the municipalities of Argao and Sibonga yesterday signed a memorandum of understanding for the conduct of oil exploration activities by the Australian-based firm off the waters of the two towns.

Despite the MOU, however, NorAsia Energy Limited could not proceed with the explorations until Governor Gwendolyn Garcia lifts the cease and desist order she issued against oil explorations in the province.

Garcia will sign the executive order that would lift the cease and desist order only after the P500,000 compensation fund would be deposited each to Argao and Sibonga.

“We hope that there will be a speedy action on this matter. I will continue to protect the interest of our LGUs, our people and the basic rights of every Cebuano to just compensation,” Garcia said after the signing of the Memorandum of Understanding.NorAsia has launched oceanographic surveys off the southeastern coastal waters of Argao and Sibonga in search for oil and natural gases since September last year.But local fisherfolk, cause-oriented groups and environmental lawyers have strongly objected to the exploratory surveys, saying such activities pose a risk to both the livelihood of fishermen and marine life. DOE Undersecretary Matanog Mapandi assured that DOE would abide by the agreement even as he believes that the project would contribute to the growth and developments of the two municipalities and the province, at large.For his part, Argao Mayor Edsel Galeos said his municipality is lucky for the presence of oil and natural gas but he is thankful that Capitol intervened in the issue. “This is a mechanism to protect all parties and stakeholders,” Galeos said, urging the government agencies concerned to help monitor and implement the agreement. He also asked the proponents of the project to always coordinate with the LGU’s concerned to avoid possible conflicts.

Galeos and Sibonga Mayor Lionel Bacaltos earlier refused to sing the draft Memorandum of Agreement that DOE had prepared last year. This also led Garcia to issue the executive order suspending the seismic survey conducted by NorAsia.

The governor said it was not sufficient for the project proponent to simply send her and the two concerned town mayors of a letter informing them of their plan to conduct exploratory survey. In her speech yesterday, Garcia said she ordered the immediate stoppage of the oil drilling until “a just and efficient system of compensation and a commitment to local government coordination shall be agreed upon by the persons concerned.” Garcia confirmed receiving a call from Energy Secretary Angelo Reyes asking her that the signing of understanding be postponed since he has other concerns on the said MOU. But Garcia refused. “This after months of months of negotiations, careful scrutiny, amending and enhancing a mere memorandum of understanding that was crafted, first and foremost, by their (DOE) lawyers themselves,” said Garcia.

Kristoffer   Fellowes, NorAsia chief executive officer, refused to answer queries from reporters, saying that “questions in relation to operations should be referred to the DOE.”Under the MOU, all parties have agreed to “observe cooperation in all oil exploration activities of DOE and its service contractors,” and agreed “on a collaborative mechanism on the compensation of claims of affected fisher folk.” The DOE vowed to abide by the provisions of the Local Government Code on the necessity of prior and periodic consultation with the local government units, as well as the payment of trust fund for the two municipalities. — Garry B. Lao/JMO (THE FREEMAN)