President Ferdinand 'Bongbong' Marcos Jr. on Monday signed the renewal agreement for the Malampaya Service Contract 38 (SC 38) which allows the continued production of the gas field for another 15 years.

In a speech shortly after the renewal in Malacanan Palace, the Chief Executive said the project will help the country to reduce its "dependence on oil imports while at the same time ensuring a stable supply of energy."

“As we renew Service Contract (SC) 38, we optimistically look forward to the continued production and utilization of the remaining reserves of the Malampaya gas field, as well as further exploration and development of its untapped potential,” Marcos said.

He added the renewed SC 38 will generate more revenues for the government, noting that the Malampaya gas project has generated a total of PHP 374 billion in revenues since the project started in 1990.

“Because of the contract renewal, the government will continue to generate revenues from the project through a favorable sharing scheme with our private sector partner,” Marcos said.

In the same speech, the President ordered the Department of Energy (DOE) to ensure that the project’s implementation is strictly monitored and make sure the consortium’s goals are aligned with the country’s national interests.

“Through our strategic partnerships, we will remain on course towards the attainment of our goals of total electrification of our country, and of energy adequacy, reliability, and affordability, all for the betterment of the lives of the ordinary Filipinos,” he said.

The Department of Energy (DOE) said the 25-year production contract — set to expire on February 22, 2024 — was renewed until February 22, 2029.

“This will allow for the continued production of the Malampaya gas field, ensuring that the remaining gas reserves are further explored and utilized,” DOE said.