15 more years: Bongbong Marcos signs Malampaya renewal deal
MANILA, Philippines — President Ferdinand “Bongbong” Marcos Jr. extended the production at the Malampaya Gas Field for 15 years in a renewal deal signed on Monday.
Marcos signed the agreement in a ceremony in Malacañan Palace.
“As we renew Service Contract (SC) 38, we optimistically look forward to the continued production and utilization of the remaining reserves of the Malampaya gas field, as well as further exploration and development of its untapped potential,” he said in his speech.
Marcos also called on the Department of Energy (DOE) to see to it that the project’s implementation is strictly monitored and to make sure the consortium’s goals are aligned with the country’s national interests.
Article continues after this advertisementConsidering the projects as the key to the administration’s drive towards energy security, he said it is also consistent with the Constitution and the State policy of hastening the discovery and production of the country’s indigenous petroleum.
Article continues after this advertisementBecause of the contract renewal, the President said government would continue to generate revenues from Malampaya through a favorable sharing scheme.
“Through our strategic partnerships, we will remain on course towards the attainment of our goals of total electrification of our country, and of energy adequacy, reliability, and affordability, all for the betterment of the lives of the ordinary Filipinos,” he said.
The renewal agreement was for Service Contract 38, which was first awarded to Shell Philippines Exploration B.V. in 1990.
The Department of Energy (DOE) announced the renewal of the 25-year production contract for the Malampaya Gas Field, extending the deadline to February 2039.
Originally set to expire in February 2024, the contract will now run for an additional 15 years, keeping the field operational since 2001.
“This will allow for the continued production of the Malampaya gas field, ensuring that the remaining gas reserves are further explored and utilized,” DOE said in a statement.
READ: Malampaya Energy ramps up exploration and production
Aside from continuing the production operations, the contract requires the conduct of a minimum work program consisting of geological and geophysical studies and the drilling of at least two deep water wells during the Sub-Phase 1 from 2024 to 2029.
This is aimed to “unlock the potential” in both the existing gas field and nearby prospect areas to provide incremental production, DOE said.
“The discovery of additional reserves in the Malampaya gas field will boost the country’s quest for energy security. It is also expected to encourage opportunities for further exploration in the country, which to date remains underexplored, and to add to the Philippines’ energy portfolio,” the department added.
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Present at the event was businessman Enrique Razon whose Prime Infrastructure Capital Inc. earlier acquired Shell Pilipinas’ 45% stake in SC 38.
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LOOK: President Marcos signs the renewal agreement for the Malampaya Gas Field.
— Daphne Galvez (@daphnegalvez_)
