(NYMWPS) — Former Philippine Department of Energy Undersecretary Eduardo Mañalac and the National Movement for the West Philippine Sea or NYMWPS on Monday, Feb. 13, appealed to President Ferdinand “Bongbong” Marcos Jr. to terminate Service Contract 38 of the Malampaya project when it expires in 2024.
Since it began commercial operations in 2001, the Malampaya project has produced cleaner-burning natural gas which supplies five power plants in the main and northern island of Luzon and 20% of its power requirements.
Malampaya is currently operated by Prime Infrastructure Capital owned by Enrique Razon Jr. and Udenna, owned by Dennis Uy.
Mañalac and NYMWPS are asking President Marcos to order the government-owned Philippine National Oil Company or PNOC to operate the deepwater gas-to-power project.
The PNOC was created in 1973 by former President Ferdinand Marcos Sr. to supply oil to the Philippines. Since then, the PNOC’s charter has been amended several times and now includes exploration, exploitation and development of all energy resources in the country.
Following an online conference with NYMWPS on Feb. 9, Mañalac said the government should take over Malampaya’s operations.
He said this will “maximize earnings” for the Filipino people, who are at this point, “losing billions of pesos” to what he and NYMWPS believe are “unqualified private companies.”
Udenna and Prime Infra earn 50 million pesos (about $912,000) each, or a combined 100 million pesos (about $1.8 million) daily from Malampaya gas that the Philippines government may earn if it takes full control of the operations, Mañalac said.
Presidential Decree No. 87 or the Oil Exploration Act of 1972 mandates that such activities should ensure maximum benefits to the people.
P.D. 87 also requires that only companies that possess technical expertise and financial capability shall be granted service contracts.
Mañalac and the NYMWPS had earlier questioned the process by which Prime Infra and Udenna acquired the Malampaya interests from Shell and Chevron.
They reiterated that Prime Infra and Udenna do not have the required technical capability to operate the gas field.
Prime Infra and Udenna each controls 45% or a total of 90% of the shares in the gas field. The PNOC holds the remaining 10%.
