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Service Contract 38 - Malampaya Project

Transparency Seal
Corporate Governance
Freedom Of Information
Project Location
Offshore Palawan
JV Partners and Percent Equity
Shell Philippines Exploration BV (SPEX)
Service Contract 38 - Malampaya Project
Project description

SC 38, which is situated in offshore northwest Palawan, was awarded to Shell Philippines Exploration B.V. (SPEX) on 11 December 1990. The block currently covers an area of around 830 sq. km. First gas from the Malampaya Deepwater Gas-to-Power Project flowed to the platform in October 2001.

PNOC EC holds 10% participating interest with SPEX (Operator) and UC38 which each hold 45%.

Since it began commercial operations in 2001, the Malampaya project has produced cleaner-burning natural gas which supplies five power plants in Luzon, namely: Sta. Rita (1,000 MW), San Lorenzo (500 MW), Ilijan (1,200 MW), San Gabriel (414 MW), and Avion (97 MW).

The total government share from the revenues of the project as of December 2020 was at US$11.9 billion. In addition to the government’s 60% share in the net revenues, the project also reduces oil imports, ensuring a more stable supply of cleaner energy from an indigenous resource and meeting up to 20% of the country’s energy requirements.

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