Government receives P200 billion in Malampaya royalties

By Donnabelle L. Gatdula, The Philippine Star

Posted at Jul 11 2011 07:40 AM | Updated as of Jul 11 2011 07:38 PM

MANILA, Philippines - The government has received a total of P200.41 billion or $4.6 billion in Malampaya royalties from 2002 to May this year.

Based on a report from the Department of Energy (DOE), gross proceeds from Malampaya, including project contractor’s cut and cost recovery allotment amounted to $10.976 billion as of last year.

The report said the fraction for contractor Shell Philippines Exploration B.V. and partners, Chevron and PNOC-Exploration Corp., had been placed at $2.855 billion (or around P122.799 billion).

The cost recovery allocations or the amount aligned to recoup capital investments in the project totaled $3.836 billion.

It would be noted that the DOE has allotted some P8 billion from the Malampaya project’s royalties of the National Government to ensure security of energy-related projects particularly those oil exploration projects located in far areas within the Philippine waters.

Almendras earlier said the Philippines through the DOE and the Department of National Defense (DND) will procure military equipment from the US government which will, in turn, agree to provide training for Filipino naval force.

Almendras said around P150 million of the P8 billion budget will be used for training.

The field produced a total of 970 billion cubic feet of gas, 43.9 million barrels of condensate and 1.9 million barrels of oil.

Malampaya also powers up 2,700 MW natural gas power plants in Luzon. These plants are First Gen Corp.’s 1,000-megawatt Sta. Rita and 500-megawatt San Lorenzo generating plant; and Korea Electric Power Corp.’s (Kepco) 1,200-megawatt Ilijan power facility in Batangas province.

The Malampaya field is projected to produce gas for 25 years. It started commercial operations in 2001.