Marcos OKs Malampaya license extension until 2039

Metro Manila (CNN Philippines, May 15) — President Ferdinand Marcos Jr. on Monday approved the extension of the operations of the Malampaya gas-to-power facility by another 15 years.

In a statement, the Department of Energy (DOE) said the production contract, which will lapse on Feb. 22, 2024, has been extended until 2039 after the president signed the renewal agreement for the Malampaya Service Contract (SC) No. 38.

During a ceremonial signing at the Malacañang, Marcos said the renewal of the Malampaya contract would pave the way for “further exploration and development of its untapped potential.”

Aside from production operations, the consortium behind SC 38 must conduct geological and geophysical studies and the drilling of at least two deep water wells from 2024 to 2029.

The contract also entails “exploratory drilling” further away from the Malampaya production area.

In a separate statement, the Palace said the project would “reduce the country’s dependence on oil imports and ensure a more stable supply of cleaner energy….”

Marcos also directed the Energy Department to make sure that the consortium’s activities are aligned with national interest.

Ports tycoon Enrique Razon's Prime Infrastructure leads the consortium. Other members are UC38 LLC Holding of businessman Dennis Uy and state-owned PNOC Exploration Corp.

“The discovery of additional reserves in the Malampaya gas field will boost the country’s quest for energy security. It is also expected to encourage opportunities for further exploration in the country, which to date remains underexplored, and to add to the Philippines’ energy portfolio,” the Energy Department said.

Supply from Malampaya currently powers up about 20% to 30% of Luzon's electricity needs.