Published
By Myrna M. Velasco
State-run Philippine
National Oil Co.-Exploration (PNOC-EC) will likely take a key role in any
government’s decision to extend Service Contract (SC) 38, or the license
governing the development and operation of the Malampaya gas field project.
Energy Undersecretary
Donato D. Marcos indicated that he will be engaging PNOC-EC on inputs relating
to possible extension of the Malampaya field’s commercial life – but it is not
certain yet if it will be given to the same set of contractors or if it shall
be more prudent for government to change the course of the extended license’s
award.
“We will sit down with
PNOC-EC and we will come up with feasible financial, technical and legal
parameters on how to handle Malampaya’s license extension,” he said. The energy
official pointed out that major consideration would be an arrangement that
shall be more beneficial to the Philippine government – primarily in terms of
revenue share.
The Malampaya contract
will lapse in 2024, and prior to reckoning date, the field contractor led by
Shell Philippines Exploration B.V. (SPEX) already filed with the Department of
Energy (DOE) its application for a 10-year license extension.
It remains a puzzle
what scale the facility could still yield as additional gas supply – since both
government and the Malampaya contractor had not been transparent enough on
survey analysis or reserve data relating to the field.
There had been reports
of prospective gas yield until 2027 but for leaner megawatt-capacities of power
projects. Even that though may already require updated study. On mode of
license extension, it had been previously proposed that PNOC-EC be warranted an
equity hike of up to 33.3-percent; must already be equal to the shareholdings
held by SPEX and Chevron Malampaya LLC.
PNOC-EC is currently
the minority partner with just 10-percent share in the gas field project.
With higher stake in
the project, it was opined that PNOC-EC “can better protect the interest of the
Philippine government,” because it can already exercise ‘swing vote’ in
business decisions.
An option being set on
the table also is for PNOC-EC to corner substantial shareholdings of 49-percent
in the project, and will offer the majority equity of 51-percent to a strategic
partner that could provide the technical expertise in manning the field’s
operations.
It has been noted that
with PNOC-EC holding minority interest, “the operations will not be subject to
stringent government regulations, thus, ensuring smooth and efficient
operations of the project.”
The propounded
49-percent equity take for PNOC-EC is also aligned with the joint venture deal
policy that the National Economic and Development Authority has set forth for
government-run firms.
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