President Ferdinand Marcos Jr. signed the service contract renewal agreement allowing the Malampaya gas-to-power project consortium to operate for another 15 years, easing fears of a power crisis caused by the original expiration of the deal in 2024. /PDI
Aside from producing gas, the consortium is required to draw up a work program consisting of geological and geophysical studies and the drilling of at least two deepwater wells from 2024 to 2029 to unlock the potential of the existing gas field and adjacent areas to beef up Malampaya’s dwindling output.
“Because of the contract renewal, the government will continue to generate revenues from the project through a favorable sharing scheme,” the president added, noting that the government has so far generated P374 billion in revenues from the project.
Razon, Prime Infra chair, welcomed this development as significant for the country’s energy security and independence.“The Malampaya asset will continue what it has started in operating this world-class installation for further exploration and utilization of the country’s remaining gas reserves, as well as open up the other potential near field areas for future production,” he said in a statement.
House Deputy Speaker Ralph Recto said the extension “not only guarantees our supply of that strategic fuel but retains our presence in an area regarded as harboring big oil and gas deposits.”
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