Senator Imee Marcos has claimed that the Malampaya Gas Field presented a missed opportunity for the Philippines to create the Maharlika Investment Fund. During an interview on ANC’s World Tonight, Marcos noted that the gas field’s operation would have provided ample funding for the creation of the MIF, had the Philippine government retained control rather than awarding the contract to Enrique Razon’s Prime Infrastructure Capital and Dennis Uy’s Udenna. Marcos’ statements were echoed by former Secretary of the National Economic Development Authority (NEDA), Winnie Monsod, who claimed that Malampaya would have been the “perfect source of funds” for the bill.
Current situation
In early 2021, the service contract for Malampaya was extended until February 2039 and awarded to Prime Infrastructure Capital and Udenna to operate until that date. However, the National Youth Movement for the West Philippine Sea (NYMWPS) has strongly opposed the extension and award to private firms, stating that the operation of the field should have been retained by the Philippine government to generate substantial financing for national development.
NYMWPS’s stance
NYMWPS’s statement notes that Senator Marcos’ sentiments about the missed opportunity are consistent with the movement’s own opinions. It strongly believes that Malampaya should have remained under government control, and that the funds generated by the operation of the field should have been used to develop the country’s various sectors, including human capital, health, infrastructure, education, defense and commerce.
The Malampaya Gas Field
The Malampaya Gas Field is the Philippines’ largest and only producing natural gas field to date. Located in offshore Palawan, it supplies three natural gas-fired power plants, which provide a combined total of 2,700 MW of power to Luzon, the country’s largest island. The field is operated by Shell Philippines Exploration B.V. as lead operator, with the Philippine National Oil Company-Exploration Corporation (PNOC-EC) and Chevron Malampaya LLC as co-venturers. The Shell-led consortium has provided over $10 billion in revenues for the Philippine government since commercial production of natural gas began in 2002.
Maharlika Investment Fund
The Maharlika Investment Fund (MIF) was proposed by Senator Marcos in a bid to channel funds into critical infrastructure projects. The bill seeks to provide investment capital for infrastructures like the rehabilitation of the Ninoy Aquino International Airport and North Luzon Expressway. The MIF also aims to finance development projects with high potential to drive job creation in the country.
Conclusion
The Malampaya Gas Field has been widely regarded as one of the Philippines’ most valuable assets, with the potential to create significant funding for various national development initiatives. The current decision to award the operation of the field to private firms rather than retain it under government control has drawn strong opposition from various advocacy groups, including the NYMWPS. Senator Marcos’s comments serve to highlight the missed opportunity that the government could have realized had it chosen differently, with the funds generated by the field potentially contributing to national development initiatives. While the extension of the service contract for the field is already in place until 2039, the questions raised by critics of the current decision continue to hold weight and will likely be a topic of discussion in future debates on the country’s overall development strategy.
