THE GOVERNMENT expects to rake in P20.23 billion in royalties from the Malampaya gas field this year, according to the Department of Budget and Management (DBM).
“The amount is P5.7 billion or 22% less than the P25.90 billion in gas royalties that the government earned from Malampaya in 2022,” Assistant Minority Leader and Surigao Del Sur Rep. Johnny T. Pimentel said in a statement.
The government expects to receive lower royalties from the Malampaya until 2026 due to the shrinking gas output from five existing production wells, Mr. Pimentel said.
According to the DBM’s Budget of Expenditures and Sources of Financing for next year, Malampaya royalties are estimated to be at P13.5 billion in 2024, and P8.5 billion each in 2025 and 2026.
“These are all approximate calculations. The actual royalties could still end up higher,” Mr. Pimentel said. “In fact, the government was expecting only P24.3 billion in royalties in 2022, but the actual money that came in was higher by P1.6 billion.”
President Ferdinand R. Marcos, Jr. in May renewed Service Contract (SC) 38 for the Malampaya for another 15 years or until Feb. 22, 2039.
The gas field is located 65 kilometers northwest of the island of Palawan. Gas is delivered through a 504-kilometer-long pipeline under the sea.
The Malampaya gas field is the country’s only indigenous commercial source of natural gas and is crucial to sustain the Philippines’ energy supply. However, it is expected to be commercially depleted by 2027.
Energy Secretary Raphael P.M. Lotilla said in July that the Malampaya consortium will start drilling new wells by the end of 2024, which is expected to secure gas supply by 2026.
The Malampaya Consortium is composed of Prime Energy Resources Development B.V., a subsidiary of Prime Infrastructure Capital, Inc. (Prime Infra), which has a 45% stake; UC38 LLC; and PNOC Exploration Corp. (PNOC-EC), which own a 45% and 10% interest, respectively. — Beatriz Marie D. Cruz
