Photo credit: PCO

President Ferdinand R. Marcos Jr. has signed the 15-year production contract, which shall expire on February 22, 2039. The renewal will allow for the continued production of the Malampaya gas field, ensuring that the remaining gas reserves are further explored and utilized.

The SC 38 Consortium, responsible for the operations, will conduct a minimum work program consisting of geological and geophysical studies and the drilling of at least two (2) deep water wells during the Sub-Phase 1 from 2024 to 2029. This firm work program is geared towards unlocking the potential both in the existing gas field and nearby prospect areas to provide incremental production. Failure to comply with exploration requirements may result in the Consortium relinquishing a portion of the exploration areas.

The discovery of additional reserves in the Malampaya gas field is expected to boost the country's energy security and encourage opportunities for further exploration in the country. The SC 38 Consortium is required to submit a Decommissioning Plan and Budget covering the abandonment of wells and decommissioning of facilities in accordance with applicable international standards, within thirty (30) calendar days from the effectivity of the Renewal Agreement for approval by the Department of Energy.

The renewal of the production contract is in line with the Philippine government's commitment to the exploration and utilization of natural gas resources to support economic development and energy security. The Malampaya gas field has been a significant contributor to the country's energy mix since its discovery in 1990 and its continued production will ensure a stable and sustainable source of energy for the Philippines.