Global firms Chevron Corporation and Royal Dutch Shell made over Php350 billion in revenues from the Malampaya gas-to-power project before their respective exits from the venture.
Based on a Manila Bulletin report, government documents show that the royalty share of the two energy giants had been on top of the roughly $6.5billion or over Php300 billion cost recoveries that they got from the project. The said amount includes the reimbursements on investments that they inserted into the gas platform’s development and operations.
Overall royalty share and cost recoveries of the Malampaya consortium have already totalled more than Php650 billion.
As of 2018, a year before Chevron’s exit, the contractors’ revenue share had already been at more than $7.2 billion, which includes that of government-owned PNOC-Exploration Corporation (PNOC-EC).
Prior to the Udenna Group’s entry into the Malampaya consortium, Chevron and Shell owned 45% each, while PNOC-EC owned the remaining ten percent. Chevron sold its share to Udenna in March 2020 and was approved by the Department of Energy last April, while the Dennis Uy-led firm announced that it bought Shell’s stake in May. Both transactions are now intensely being scrutinized by the Senate.
Government sources noted that Chevron still earned additional revenues in 2019, while Shell continued to get its share of revenues until its transaction with Udenna gets government approval, which would also mean Uy’s control of the country’s only major source of indigenous gas.