The government has received a total of P228.45 billion from the Malampaya gas-to-power project off Palawan since the complex began producing natural gas commercially in 2002, according to the Department of Energy (DoE).
The amount represented the total amount of royalties that the Philippine government received as of November this year, data from the DoE showed.
Under the service contract agreement, 70 percent of the gross proceeds from the sale of natural gas would go to the contractor to recover the investment cost. The remaining 30 percent will be shared by the government and the consortium on a 60-40 basis, respectively.
Once the contractor recovers its investments, the 30-percent share would then increase, allowing the government to gain from these petroleum projects. This is why the government’s share was much bigger now as the consortium operating the Malampaya power project already recovered its initial investments back in 2006.
However, the government share might shrink back to 30 percent once the consortium operating the Malampaya power project embarks on a $1-billion investment for Phases 2 and 3 over the next several years, a government source said.
The $4.5-billion Malampaya power project provides natural gas to the 1,200-megawatt Ilijan plant of Korea Electric Power Corp. (Kepco), the 1,000-MW Sta. Rita facility and 500-MW San Lorenzo plant, all in Batangas.
Royal Dutch Shell, through Shell Philippines Exploration BV, owns a 45-percent stake in Service Contract 38, which covers Malampaya. Chevron Malampaya LLC owns the other 45 percent while PNOC Exploration Corp. holds the remaining 10 percent.—Amy R. Remo