Problem solved!

I had to use

ASM
__CONFIG _CONFIG1, _FOSC_INTOSC & _WDTE_OFF & _PWRTE_ON & _MCLRE_OFF & _CP_OFF & _CPD_OFF & _BOREN_OFF & _CLKOUTEN_OFF & _IESO_OFF & _FCMEN_OFF
__CONFIG _CONFIG2, _WRT_OFF & _PLLEN_OFF & _STVREN_OFF & _BORV_19 & _LVP_OFF

ENDASM

and the trick was to ";" comment out the __CONFIG in M12F1822.INC file in the PBP directory , because it conflicted.