Philippines renews Malampaya service contract for 15 years
It is set to expire on 22 February 2024.
Philippine President Ferdinand Marcos, Jr. signed the renewal of service contract (SC) 38 for the Malampaya Deep Water Gas-to-Power Project for another 15 years which would support the country’s energy security.
In a statement, the Presidential Communications Office said the Malampaya Project will lessen the country’s reliance on imported oil and enable a more stable clean energy supply sourced locally.
The Philippines’ Department of Energy said the 25-year production contract is supposed to expire on 22 February 2024. The final renewal moves the expiration to 22 February 2039.
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“This will allow for the continued production of the Malampaya gas field, ensuring that the remaining gas reserves are further explored and utilized,” the department said in a statement.
Under the contract, the SC 38 Consortium is mandated to continue production operations and conduct a minimum work programme which includes geological and geophysical studies and the drilling of at least two deepwater walls during the Sub-Phase 1 from 2024 to 2029 to tap the potential of the existing gas field and nearby areas.
The consortium is required to submit its Decommissioning Plan and Budget within 30 days from the effectivity of the renewable deal.