The Malampaya gas production facility yielded a total of $11.9 billion (around Php573 billion) in revenues with the national government receiving the bulk worth Php325 billion, as of end-December 2020, the Department of Energy (DOE) reported.
Based on a Manila Bulletin article, government-owned PNOC-Exploration Corporation (PNOC-EC) remitted Php20.8 billion in dividends to the Bureau of the Treasury last year.
PNOC-EC President and CEO Rozzano Briguez said that the $11.9 billion revenue from the Malampaya venture surpassed the initial projected revenue of $10 billion for the entire project duration. Malampaya’s Service Contract 38 began commercial operations in 2001 and is expected to end in 2024.
Briguez said that the Malampaya project strategically positioned PNOC-EC as a major contributor to the national coffers because of its ten percent stake in the gas field.
He further emphasized that Malampaya has improved the skills set and expertise of Filipinos in upstream petroleum ventures, as private partners Shell Philippines Exploration B.V. (SPEX) and Chevron Malampaya LLC chose to tap local knowledge in the operations of the gas field. This, he said, somehow showed that the private sector could bridge the gap on what the government could not deliver in terms of oil and gas investments.
While the PNOC-EC is currently looking for good prospects for the implementation of oil and gas projects, Briguez pointed out that there are still challenges needed to be resolved, including legal setbacks before the next phases of well drilling starts in line with the country’s search for the next Malampaya.
SPEX and Udenna Corporation equally own the remaining 90% of Malampaya. The DOE recently approved Udenna’s purchase of its 45% from Chevron last year. Udenna and the MVP Group of Manny V. Pangilinan are in a head-to-head battle for SPEX’s stake, which is being sold. The Dennis Uy-led firm, though, is expected to exercise its right of first refusal.