A private company has offered to support the continued development of the Malampaya resources well after the current service contract of the gas find expires in 2024.
Pangilinan-led oil and gas exploration firm PXP Energy Corp. has submitted an unsolicited proposal to the Department of Energy (DOE) for the strategic development and utilization of an integrated gas hub in the Malampaya project upon the expiry of its service contract (SC) in 2024.
In a disclosure to the Philippine Stock Exchange, the company said it eyes the operations of the facility as it is strategically positioned in the West Philippine Sea where other prospects such as the Sampaguita Field and the entire SC 72 operated by PXP are also located.
The Sampaguita prospect’s development was temporarily stopped in 2014 when the government suspended drilling activities in the Reed Bank amid a territorial dispute with China.
The company seeks to continue the development of other possible sources in the Malampaya field to ensure supply of indigenous natural gas resources that will bring in revenues for the government apart from yielding substantial foreign exchange savings from reduced importation of coal and other fuels.
The Malampaya gas-to-power project that began commercial operations in 2001 was developed and operated by a consortium between Shell Philippines Exploration BV, Chevron Malampaya LLC and state-owned PNOC Exploration Corp. under SC 38.
The project currently provides fuel to power plants with a combined capacity of more than 3,000 megawatts.
Energy Secretary Alfonso Cusi told Reuters he has “not seen and studied the proposal.”
Likewise, PXP also said it has expressed interest to buy Chevron›s 45 percent ownership on SC 48 but did not reveal the likely amount that will be involved.
The current consortium operating the Malampaya project expressed its intent to apply for an extension of the contract.
But when Cusi was asked to comment on the said proposal, he only answered that the plan should be made official and in writing.