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Service Contract 38 - Malampaya Project

Transparency Seal
Corporate Governance
Freedom Of Information
ISO
Project Location
Offshore Palawan
JV Partners and Percent Equity
Prime Energy Resources Development B.V.
40%
Prime Oil and Gas Inc.
5%
UC38
45%
PNOC EC
10%
Service Contract 38 - Malampaya Project
Project description

SC 38 contract was awarded to the SC 38 Consortium on 11 December 1990. In May 2023, President Ferdinand Marcos Jr. signed the Renewal Agreement for SC 38 extending the service contract term for another fifteen (15) years or until 22 February 2039.

The block, which is situated in offshore northwest Palawan, 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.

The SC 38 Consortium is comprised by PNOC EC which holds 10% participating interest with Prime Energy Resources Development B.V. (Operator) and Prime Oil and Gas Inc. holding 40% and 5%, respectively.  UC38 holds the remaining 45%.

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

The total government share from the revenues of the project as of December 2022 was at US$13.14 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.

 

www.malampaya.com

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