Puerto Princesa City, Jan. 19, 1998 - The province of Palawan will be richer by $2.1 once the Camago-Malampaya gas field starts operation in the year 2002.
The amount represents the 40% share of the province from the national government's share in the gas field project with Shell Philippines Exploration and Occidental Petroleum. Inc., which President Ramos finalized last week in a visit to Palawan. NEWSFLASH editor Sol Jose Vanzi accompanied the President and covered the event for Philippine Headline News Online (PHNO).
During the signing of the agreement, Energy Secretary Francisco Viray explained to NEWSFLASH that the government's share of the net proceed realized from the sale of gas will provide a substantial long-term revenue stream over a 20-year period.
Based on the production level and gas pricing formula, the estimated government revenues for the 20-year contract period will be about $8.1 billion.
Camago-Malampaya is an island located in the Northeast portion of El Nido town in Palawan, some 200 kilometers away from Puerto Princesa. The natural gas will be delivered from El Nido to power plants in Batangas by underwater pipelines.
Reported by: Sol Jose Vanzi
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