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Advocates Philippines
DOE Secretary Lotila Sees Promising Prospects In Malampaya Extension
Department of Energy Secretary Raphael P.M. Lotilla expressed his elation and appreciation for the successful extension of the Malampaya Renewal Agreement. This extension marks a significant milestone as the first-ever granted extension to a natural gas producing Service Contract in the Philippines.
Secretary Lotilla emphasized the promising prospects within the Service Contract area, which played a vital role in the decision to grant the extension. The presence of attractive opportunities for exploration activities in the Philippines bodes well for the future of the petroleum industry.
A noteworthy highlight of the Malampaya Renewal Agreement is that it is the first consortium backed entirely by Filipinos and managed solely by Filipino professionals. This achievement symbolizes the maturation of the Philippine petroleum industry and the growing competence of local talents in the sector.
During his opening statement, Secretary Lotilla also reflected on the significance of the government's visit to the Malampaya platform on December 8, 2022. The visit aimed to acknowledge and appreciate the dedicated work of the skilled men and women operating the platform and other aspects of the enterprise. The government sought to boost morale and ensure that the country would not lose their expertise amidst the uncertainty surrounding the decision on Malampaya's future.
The Secretary acknowledged the technical competence displayed by the operator and its personnel over the past six months. They efficiently managed the decline in gas supply and successfully executed maintenance activities. These accomplishments reaffirm the Department of Energy's previous findings regarding the operator's technical, financial, and legal qualifications.
While the new drilling activities in Service Contract 38 will take several years to yield additional gas flows, Secretary Lotilla assured the public that efforts would be directed towards importing liquefied natural gas (LNG) to compensate for the shortfall in Malampaya gas.
This strategy aims to ensure stability in the country's power supply and make energy available at fair prices. The extension of the Malampaya Renewal Agreement, coupled with the commitment to address gas shortfalls through LNG imports, sets a positive trajectory for the future of energy in the Philippines. The government's recognition of the potential within the Service Contract area and its support for the local petroleum industry reflect a forward-looking approach to meet the nation's energy needs.
Secretary Lotilla emphasized the promising prospects within the Service Contract area, which played a vital role in the decision to grant the extension. The presence of attractive opportunities for exploration activities in the Philippines bodes well for the future of the petroleum industry.
A noteworthy highlight of the Malampaya Renewal Agreement is that it is the first consortium backed entirely by Filipinos and managed solely by Filipino professionals. This achievement symbolizes the maturation of the Philippine petroleum industry and the growing competence of local talents in the sector.
During his opening statement, Secretary Lotilla also reflected on the significance of the government's visit to the Malampaya platform on December 8, 2022. The visit aimed to acknowledge and appreciate the dedicated work of the skilled men and women operating the platform and other aspects of the enterprise. The government sought to boost morale and ensure that the country would not lose their expertise amidst the uncertainty surrounding the decision on Malampaya's future.
The Secretary acknowledged the technical competence displayed by the operator and its personnel over the past six months. They efficiently managed the decline in gas supply and successfully executed maintenance activities. These accomplishments reaffirm the Department of Energy's previous findings regarding the operator's technical, financial, and legal qualifications.
While the new drilling activities in Service Contract 38 will take several years to yield additional gas flows, Secretary Lotilla assured the public that efforts would be directed towards importing liquefied natural gas (LNG) to compensate for the shortfall in Malampaya gas.
This strategy aims to ensure stability in the country's power supply and make energy available at fair prices. The extension of the Malampaya Renewal Agreement, coupled with the commitment to address gas shortfalls through LNG imports, sets a positive trajectory for the future of energy in the Philippines. The government's recognition of the potential within the Service Contract area and its support for the local petroleum industry reflect a forward-looking approach to meet the nation's energy needs.
May 16, 2023
