Gov’t gets $1.1 B from Malampaya gas project
MANILA, Philippines—The Philippine government received $1.1 billion as its share of the income from the Malampaya gas-to-power project.
President Benigno Aquino received the symbolic check for $1,134,669,157 representing the project’s revenue contribution to the national government from Shell Philippines country manager Edgar Chua.
The amount is equivalent to more than P43 billion.
“The project is a joint venture so that government has a share and it is given every year. The US$1.1 billion is the total for 2011,” said Energy Secretary Jose Rene Almendras, who was among the officials who witnessed the ceremonial turnover.
The energy secretary expressed optimism that the government will be receiving the same return in the coming years if the price and quantity produced would be stabilized.
“Hopefully, the supply will continue so that’s the same amount of shares and if the price stays as it is that should be the quantity that we should be getting,” Almendras said.
“The only time that it will go down is when we reinvest, because we have to invest for the Malampaya Phase 2 and Phase 3…. There’s a Phase 2 and 3 which will require us to invest so that we can get more gas and prolong the supply of gas because we need gas as much as we can,” he added.
Almendras said the amount would go directly to the Malampaya fund managed by the Department of Finance.
According to Budget Secretary Florencio Abad, the Malampaya Fund has a specific purpose in law, which is to fund energy development, or for other purposes as duly approved by the President.
“We really have to be prudent whenever charging against the Malampaya Fund because of its impact on our fiscal health. Under the government of President Benigno S. Aquino III, this fund will be used reasonably and rationally,” Abad said in a statement issued in May 2011 on the status of the fund.
“So far under the Aquino administration, we have charged P2.87 billion from the fund for necessary energy-related expenditures,” he said.
These expenditures as of May 2011 include P2 billion for fuel requirements of the National Power Corporation-Small Power Utilities Group, to avert a power shortage in off-grid areas; P450 million for the Pantawid Pasada program, as direct support to jeepney and tricycle drivers affected by the recent spate of oil price hikes; and P423 million for the purchase of the USS Hamilton cutter marine vessel to strengthen the security perimeter of the Malampaya Natural Gas Project.
According to the records of the Department of Budget and Management as of May 2011, P105.95 billion has been collected from the Malampaya proceeds since 2002.
Also as of May 2011, P26.47 billion has been disbursed so far: P3.95 billion to the provincial government of Palawan; and P22.52 billion to national government agencies. Out of this amount, P2.87 billion was released in 2011.
The Malampaya Deep Water Gas-to-Power project is a joint undertaking of the Philippine government and the private sector.
The project is spearheaded by the Department of Energy, developed and operated by Shell Philippines Exploration B.V. on behalf of joint venture partners Chevron Malampaya LLC and the PNOC Exploration Corporation.
Also present during the ceremonies were Finance Secretary Cesar Purisima, PNOC chair and Chief Executive Officer Gemiliano Lopez, Shell Philippines managing director Sebastian Quinones Jr. and Shell Philippines assistant manager Sabino Santos.
