President Ferdinand “Bongbong” Marcos Jr. signed Monday the renewal settlement for the Malampaya Service Contract 38 (SC 38), permitting the continued manufacturing of the fuel discipline for one more 15 years.
“This is the key to our drive to energy security and calculated to advance the nation’s energy interest. This project will reduce our dependence on oil imports while ensuring a stable supply of energy,” Marcos stated throughout the signing ceremony in Malacañang Palace.
“It is consistent with the Constitution and our state policy of hastening discovery and production of indigenous petrol. As we renew the contract, we look forward to the continued production and utilization of the remaining reserves of the Malampaya gas field as well as further exploration and development of untapped depot,” he added.
He stated the renewed SC 38 will generate extra revenues for the federal government, on condition that the Malampaya fuel venture has generated a complete of P374 billion of revenues for the reason that venture began in 1990.
“Because of the contract renewal, the government will continue to generate revenues from the project through a favorable sharing scheme with our private sector partner,” Marcos stated.
“We are confident in the capability of the SC 38 consortium in handling this project,” he added.
In an announcement, the Department of Energy (DOE) stated the 25-year manufacturing contract — set to run out on February 22, 2024 — was renewed till February 22, 2029.
“This will allow for the continued production of the Malampaya gas field, ensuring that the remaining gas reserves are further explored and utilized,” the DOE stated.
The Malampaya gas-to-power facility fuels three gas-fired energy vegetation with a complete producing capability of two,700 megawatts (MW)—offering as much as 30% of the facility era wants of Luzon.
It is operated by way of SC 38, granted to the consortium of Prime Energy Resources Development B.V., Dennis Uy-led UC38LLC, and state-run Philippine National Oil Company-Exploration Corp. (PNOC-EC)
Under SC 38, the Malampaya Consortium is required to conduct geological and geophysical research and the drilling of a minimum of two deep water wells coated by Sub-Phase 1 from 2024 to 2029.
It additionally required the conduct of exploratory drilling away from the Malampaya manufacturing space throughout the service contract for the consortium to retain the exploration areas, else relinquish a portion.
“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,” the DOE stated.
The DOE final October gave the go sign for Razon-led Prime Infrastructure Capital Inc. to accumulate the 45% curiosity of Shell Philippines Exploration BV (SPEX) within the Malampaya Service Contract 38.
“While major regular maintenance works have been carried out over the last two decades, this is the first time under an all-Filipino owned consortium,” the DOE stated.
Prime Infra accomplished the acqusition of the 45% stake final November, and renamed the SPEX to Prime Energy Resources Development B.V.
Prime Infra in July introduced that its unit Prime Exploration Pte. Ltd. inked a share buy settlement to accumulate Malampaya Energy from Davao-based businessman Dennis Uy’s Udenna Corp..
Uy’s Malampaya Energy inked a share buy take care of Shell Petroleum N.V. to accumulate SPEX in May 2021, however this didn’t push by way of after the Philippine National Oil Company Exploration (PNOC-EC) withdrew its consent.
Prior to Uy’s acquisition of Chevron’s collaborating stake and the Razon Group’s buyout of SPEX, Malampaya Consortium was composed of SPEX, Chevron, and the PNOC-EC — which nonetheless holds 10% curiosity within the fuel discipline.
Prime Infra additionally earlier dedicated to broaden fuel manufacturing and look into growing close by fuel fields.—AOL, GMA Integrated News
Source: www.gmanetwork.com
