Ricky Razon-led Malampaya consortium remits $13B to gov’t

Ricky Razon Prime Infra

The Malampaya consortium led by Prime Energy, a subsidiary of ultra bilyonaryo Ricky Razon’s Prime Infrastructure Capital Inc., has remitted $13 billion to the national government since 2001.

“The SC (service contract) 38 has generated and remitted to the Philippine government some $13 billion since its inception,” Prime Infrastructure Capital Inc. president and CEO Guillaume Lucci said in a forum.

The Malampaya consortium comprises Prime Energy, UC38LLC and state firm Philippine National Oil Company-Exploration Corp.

The Malampaya project is one of the country’s most important power assets, as it produces natural gas for power plants in Batangas City that account for around 20 percent of the Philippines’ total electricity requirements.

It began operations in 2001, with the consortium’s license for the project set to expire in 2024.

Meanwhile, Prime Energy assured the company is “here to stay” as it committed to increase gas production at the Malampaya project and find new gas wells.

“We’re here to stay, we’re here to invest, we’re here to idramatically increase gas production with the extended term of the service contract and resource available and, more importantly, we are trying to make sure we produce the least cost to consumers,” he said.

The SC38 consortium is seeking to extend the license to accelerate investments on the Malampaya gas field and improve the output of existing wells and develop nearby gas fields.

“Our drop-dead day to produce new gas or new well is first quarter of 2026 and we hope we can actually accelerate that as much as possible while doing it safely and reliably,” Lucci said.

https://bilyonaryo.com/2023/02/09/ricky-razon-led-malampaya-consortium-remits-13b-to-govt/business/