The 15-year license extension application of the Malampaya gas field project is now in the hands of Pres. Ferdinand Marcos Jr., the Department of Energy (DOE) said.
“The Energy Resource Development Bureau (ERDB) of the DOE is withholding any comment on the request for an extension of the Service Contract (SC) No. 38 Consortium, while the same is under review by the Office of the President,” the DOE said in a statement on Tuesday.
The license extension is being sought by Prime Energy Resources Development B.V, the new operator of Malampaya.
Malampaya’s SC 38 is set to expire in 2024, and it binds the project’s consortium members to the continued operation of the facility.
Joining Prime Energy in the consortium are UC38 of Dennis Uy’s Udenna Group and state-run Philippine National Oil Company – Exploration Corporation (PNOC-EC).
Earlier, Former PNOC president Ed Manalac said that the government should take over Malampaya after SC 38 expires. He also questioned the change in the ownership of the two major stakeholders in Malampaya.
“Suffice it to say that under Presidential Decree (PD) No. 87, the interest of the country in promoting gas and oil resources for the people’s benefit remains paramount. Accordingly, the Philippine government retains at all times its full control over all aspects of gas and oil exploration and development,” DOE said.
The Enrique Razon-led company looks to drill two operational wells and an exploratory well in an attempt to extend the production life cycle of the Malampaya. It will also conduct a round of seismic surveys within the covered blocks of SC 38.