Reducing dependence on oil

GOOD news indeed.

President Ferdinand Marcos Jr. has signed the renewal agreement for the Malampaya Service Contract No. 38, or plain SC 38, that would allow the continued production of the Malampaya gas field for another 15 years until February 22, 2039.

Renewal of SC 38, which covers the Malampaya gas field in offshore Palawan, would reduce the country’s dependence on oil imports and ensure a stable supply of clean energy, Malacanang quoted the President as saying.

The agreement was signed by Mr. Marcos and representatives of the Malampaya Consortium in Malacañang on Monday.

The SC 38 was originally scheduled to expire on February 22, 2024.

“We optimistically 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 its untapped potential,” Mr. Marcos said.

During the ceremonial signing, the President said the renewal of the contract is significant to achieve the country’s energy security as Malampaya powers 20 percent of Luzon’s energy needs.

“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,” the President said

According to the Chief Executive, the 15-year extension is consistent with the Constitution, and the state policy of hastening discovery and production of the country’s indigenous petroleum.

He reiterated his administration’s commitment to actively pursue the exploration, development, and utilization of the country’s indigenous energy resources, and to optimize the country’s energy mix.

The President urged the Department of Energy to oversee the project’s implementation through strict monitoring and ensuring the consortium’s goals are aligned with the country’s national interests.

Energy Secretary Raphael Lotilla welcomed the renewal of SC 38, and noted the assessment encompassed legal, technical, and financial capabilities, and confirmed the consortium’s capacity to sustain the production operations and meet its obligations under the renewal agreement.

This policy was first laid down in 1972 through Presidential Decree 87 issued by the president’s father, then president Ferdinand E. Marcos Sr.

From the discovery of the gas field more than three decades ago, and the project’s commissioning in 2001, the Malampaya Deep Water Gas-to-Power Project has been a boon to the Philippines, providing 20 percent of Luzon’s energy requirement.

The Presidential Communications Office said in a news release through the project, the government was able to generate P374 billion in revenues.

In 2022 alone, the project yielded about P26 billion in government revenues.

The President urged the Department of Energy to oversee the project’s implementation through strict monitoring and ensuring the consortium’s goals are aligned with the country’s national interests