Gov’t expects P115B windfall from oil, gas fields
The government expects to receive between 2012 and 2015 a staggering P115 billion from upstream petroleum companies, representing the country’s share in the revenues from local production of oil and gas.
Data gathered by the Inquirer from the Department of Energy (DoE) showed that the Malampaya deep water gas-to-power project off Palawan will remain the biggest source of royalties at P113.5 billion from 2012 to 2015.
This year alone, the Malampaya field is expected to contribute P29.62 billion; P28.74 billion next year; P27.86 billion in 2014; and P27.29 billion in 2015.
The Malampaya field, which is the most successful natural gas project in the country, provides natural gas to the 1,200-megawatt Ilijan plant of Korea Electric Power Corp. (Kepco), 1,000-MW Sta. Rita facility and 500-MW San Lorenzo plant, all in Batangas.
To come in second is the Galoc oil field, also off Palawan, which is expected to turn in a total of P1.74 billion from 2012 to 2015. On a yearly basis, the Galoc field is seen paying royalties amounting to P526 million this year; P502.8 million next year; P406 million in 2014; and P308.7 million in 2015.
Other contributors include the Nido oil field, which is seen to contribute a total of P48 million within the four-year period; Matinloc field, with P35.8 million; and the North Matinloc field, P6.47 million.
Also included in the projected share from petroleum production are the sales from the Libertad gas field in Cebu, which began commercial production in February this year.
The gas produced by Forum Energy Plc at the field is used by Desco Inc. to generate electricity.
Based on government projections, the Libertad field will contribute a total of P1.32 million, of which P344,472 will be generated this year; P340,302 next year; P323,297 in 2014; and P307,102 in 2015.
The country’s shares in the proceeds from oil and gas production are collected by the DoE, which then remit the payments to the national government.
The government then provides the share of the host communities through the concerned local governments.
Under service contract agreements covering upstream petroleum companies, 70 percent of the gross proceeds from the sale of the oil or gas go to the contractor to recover the investment cost.
The remaining 30 is split between the government and the consortium on a 60-40 basis, respectively.
Once the contractor recovers its investments, the 30-percent share will then increase, allowing the government to gain more from these petroleum projects.
