President Ferdinand Marcos Jr. has signed the 15-year renewal agreement for the Malampaya Service Contract No. 38 (SC 38), allowing continued production in the Malampaya gas field to ensure that the remaining gas reserves are further explored and utilized.
Following the renewal, the Malampaya contract will be extended until February 22, 2039.
Under the renewed contract, the consortium would need to conduct a work program that includes geological and geophysical studies and drilling of at least two deep water wells between 2024 and 2029. This would unlock the potential in the gas field and nearby prospect areas to provide the needed production.
“The DOE recommended the renewal of the service contract, anchored on the commitment of the Consortium to actively explore and evaluate additional gas resources,” Energy Secretary Raphael Lotilla said during the ceremonial signing of SC 38.
The consortium will also conduct exploratory drilling away from the Malampaya production area in order to retain its exploration areas.
“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,” DOE said in a statement.
SC38 is granted under the consortium of Razon-led Prime Energy Resources Development B.V., Dennis Uy’s UC38LLC, and the Philippine National Oil Company – Exploration Corp. (PNOC-EC).
“Through the stringent due diligence observed, the government aims to uphold responsible and sustainable energy practices while effectively managing the valuable resource that is the Malampaya gas field,” Lotilla said.