NG Receives $1.1-Billion Royalty from Malampaya Gas for 2012
The national government, the Department of Finance (DOF), earned $1.1 billion in royalties from the Malampaya deep water-to-gas project field last year.
In a disclosure to the Philippine Stock Exchange (PSE), state-run firm Philippine National Oil Company-Exploration Corporation (PNOC-EC) has emphasized that the amount handed over to the Department of Finance (DOF) "represents the government share from the Malampaya project for the year 2012."
PNOC-EC is minority interest-holder in Service Contract 38 or the license for the Malampaya field development. The major shareholders are Shell Philippines Exploration B.V. and Chevron Malampaya LLC, with the former being the anointed field operator.
To prolong and sustain gas production at the field, the Malampaya consortium has programmed fresh investment of $1.0 billion which shall wind up by 2015 for the second and third phases of the project that covered the drilling of two wells and the installation of self-inflating platform.
The Department of Energy (DOE) together with the Malampaya joint venture partners turned over to Finance Secretary Cesar V. Purisima the check, representing the government's revenue from 2012 operations.
The Malampaya natural gas project is supplying 2,700 megawatts or up to 45 percent of Luzon's power requirements.
"Malampaya continues to benefit the country by providing much needed government revenue, and clean energy to power the lives of millions of Filipinos," Sebastian Quiniones, Shell Philippines Exploration BV (SPEX) managing director said.
Prior to the ceremony, Quiniones presented the project's next phases of development, called Malampaya Phase 2 and 3 (MP2 and MP3), which include the drilling of two additional production wells (MP2) and the installation of a second platform to house additional compressors for depletion compression (MP3).
He revealed that MP2 and MP3 will continue to deliver these benefits as the country continues on its journey towards energy security.
"We proceed with the project's next phases of development with the same standards of excellence and commitment to safety that we have lived by all these years, as we know the generations of Filipinos who benefit from Malampaya deserve nothing less," Quiniones said.
Malampaya is one of the largest and most significant industrial endeavors in Philippine history, heralding the birth of the natural gas industry in the country.
A joint undertaking between the Philippine national government and the private sector, the technologically innovative gas project is spearheaded by the DOE, developed and operated by SPEX, in behalf of joint venture partners Chevron MalampayaLLC and the PNOC Exploration Corporation under Service Contract No. …