SECTOR: Energy and Environment
SONA YEAR: 2022
Provide investment incentives for upstream gas policy
PROMISE STATUS - DATE: In progress as of 07/17/2023
- Energy Secretary Raphael Lotilla said the government is reviewing policies on the investment perks for the exploration of natural gas resources in the country, also known as upstream gas incentives.
- The review is eyeing amendments to the 50-year-old PD 87 or the Oil Exploration and Development Act ,which is said to have hindered investments in the industry because of the 60-40% net earnings sharing between the government and a service contractor. For this reason, DOE announced the creation of a technical group to review PD 87.
- While Marcos renewed the Malampaya gas field contract for another 15 years, the government will still hold a 60-40 split in the net sale of oil in the area. Lotilla explained that this is “to allow the contractor some leeway in pursuing new opportunities” in and around the depleting resources of the Malampaya gas field.
- One bill, proposing income tax incentives for petroleum contractors, is pending in the Senate Committees on Energy and Ways and Means. No similar bill has been filed in the House.