DOE eyes use of Malampaya Fund for exploration vessel

By Lenie Lectura - May 24, 2018

https://businessmirror.com.ph/doe-eyes-use-of-malampaya-fund-for-exploration-vessel/

The Department of Energy (DOE) has created a technical working group (TWG) to put together the legal and technical aspects of a plan that involves tapping the Malampaya Fund for the purchase of an exploration vessel.

“We created a TWG, which will be doing the specs on our decision to acquire an exploration vessel,” Energy Secretary Alfonso G. Cusi said. “We have asked the President to use the Malampaya Fund. We’re just waiting for the President’s approval.”

If the plan secures the green light, Cusi said, “the vessel will conduct exploration activities on the West Philippines Sea and Philippine Rise.”

“We have to determine what is underneath. If we don’t have the vessel, then we can’t conduct a detailed exploration. If we won’t have the data, then we will be dependent on third-party arrangement to procure that data. We want it as our own,” he said.

While the plan awaits the green light of Duterte, Cusi said the TWG would closely work on the terms of reference for the purchase of the vessel.

He added that if this pushes through, the DOE would have to seek assistance from other government agencies to help carry out the exploration activities. “It’s going to be a collaboration with the Department of Science and Technology and the Navy, among others. We can’t do it alone,” Cusi said.

He added the plan needs the green light of the President because the Malampaya Fund could only be utilized for energy development projects.

The government’s share from the energy resource development fund, commonly known as the Malampaya Fund, reached P16.25 billion in 2017, 21 percent higher than the previous year’s collection. The DOE, which collects Malampaya royalties, recorded a collection of P16,250,694,944.30 in 2017. This brings the total royalties to P251,893,422,351.68 since 2002. The highest collection—P37,458,390,948.09—was recorded in 2009, records show.

The DOE’s collection is turned over to the Bureau of the Treasury.

During a Senate hearing in March, Energy Assistant Secretary Gerardo Erquiza said the proposed seismic vessels will be used for oil and gas exploration.

Sen. Sherwin T. Gatchalian supports the proposal. “One of these vessels will cost P1.2 billion, which can be covered by the Malampaya Fund…. These ships can also do marine research, but primary role is seismic research,” the senator said.

The DOE earlier called on lawmakers to pass a legislation that will allow the government to tap the Malampaya Fund to pay for the P53 billion worth of debts incurred by the National Power Corp. over the years.