The consortium running the Malampaya gas-to-power project had already paid the government Php311 billion in revenues it earned since beginning commercial operations in 2001, according to Senate energy committee chairman Sherwin Gatchalian.
This was confirmed by Energy Asec. Leonido Pulido since the gas project earns at least Php17 billion annually.
Presidential Decree 87 or the Oil Exploration and Development Act of 1972 states that 60% of revenues from upstream gas projects like Malampaya must go to the government, while the remaining 40% goes to the contractor.
At present, 45% of the Malampaya consortium is composed of Shell Philippines Exploration B.V. (SPEX), while Udenna Corporation of Davao-based magnate Dennis Uy owns the other 45% after purchasing it from Chevron Malampaya LLC last March. The government, though PNOC Exploration Corporation, owns the remaining ten percent.
SPEX is selling its stake as part of its mother firm’s long-term business stability plans in the country, while senators have raised questions on the Udenna-Chevron deal. Udenna, the MVP Group of Manuel V. Pangilinan, and San Miguel Corporation of Ramon Ang have expressed interest in SPEX’s stake.
Moving forward, Gatchalian emphasized that there should be assessments on Malampaya’s service contract expiration in 2024, the probable depletion of reserves by 2026 or 2027, and SPEX’s impending sale. The senator had already said that the buyer of SPEX’s stake must have the technical capability to run the gas platform.