Marcos Jr. Signs Contract Renewal for Malampaya

President Ferdinand Marcos Jr. made a significant move towards securing the country’s energy future by signing the renewal agreement for Malampaya Service Contract No. 38 (SC 38).

This contract extension grants another 15 years of production for the Malampaya gas field, a vital source of energy that supplies 20 percent of Luzon’s power needs.

The ceremonial signing took place at the Malacañang Palace, where President Marcos emphasized the contract’s importance in achieving energy security and reducing the nation’s reliance on oil imports.

The renewal agreement, initially set to expire in 2024, aligns with the constitution and the state policy of accelerating the discovery and utilization of indigenous petroleum resources, according to Marcos.

Marcos also reaffirmed his administration’s commitment to actively pursue the exploration, development, and utilization of the country’s indigenous energy resources. The Malampaya gas field, with its remaining reserves and untapped potential, plays a crucial role in optimizing the nation’s energy mix and reducing dependence on foreign oil.

Meanwhile, the president also urged the Department of Energy (DOE) to diligently oversee the project’s implementation, emphasizing the alignment of the consortium’s goals with the national interest.

DOE Secretary Raphael Lotilla welcomed the renewal of SC 38, highlighting the meticulous evaluation conducted by the department. The assessment covered legal, technical, and financial capabilities, ensuring that the consortium has the capacity to sustain production operations and fulfill its obligations under the renewal agreement.

The Malampaya gas field, discovered over three decades ago and commissioned in 2001, has been a key power asset to the country as data from the Presidential Communications Office show that the government has generated PHP374 billion in revenues, with PHP26 billion contributed in 2022 alone.

The signing event was attended by House Speaker Martin Romualdez, Senator Raffy Tulfo, Executive Secretary Lucas Bersamin, and Chief Presidential Legal Counsel Juan Ponce Enrile, among others. (GFB)