League of Provinces of the Philippines Website

Gov. Joel Reyes
Palawan

The Province of Palawan should have an equitable share in the proceeds from the Malampaya petroleum utilization and development.

Palawan Gov. Joel T. Reyes solicited the collective support of the governors to Palawan’s advocacy to get an equitable share in the proceeds from the Malampaya contract in order for it to serve as a precedence to all LGUs concerned.

On December 11, 1990, the Department of Energy, in behalf of the national government, entered into Service Contract No. 38 with Shell Exploration B.V./Occidental Philippines, Inc. to conduct petroleum operations in the Camago-Malampaya area.

Malampaya’s natural gas reserves are estimated to be 2.5 trillion cubic feet (tfc) and 85 million barrels of condensate, which could provide power of 2,700 megawatts for twenty years.

The national government is expected to generate US$8.1 billion, and the host LGU US$ 2.1 billion, in revenues from the 20-year contract.

Reyes explained that both the Constitution and the Local Government Code has mandated that LGUs get an equitable share in the proceeds of the utilization and development of the national wealth.

He pointed out that the lower courts have already ruled in favor of the province in the petition for declaratory relief which the latter filed relative to the LGU’s share in the Malampaya contract. The petition is now pending before the Supreme Court.

Meanwhile, Gov. Erico B. Aumentado designated Gov. Orlando Fua to head the committee of one to undertake a thorough study on the rationale of the P200 million annual allocation by the national government for the Palawan Sustainable Development.

Gov. Fua sought for an in-depth study on the rationale of the P200 million annual allocation for the sustainable development of Palawan so that it could be applied to all the provinces.

Gov. Reyes explained that the allocation is by virtue of Republic Act 7611, or the Strategic Environmental Plan (SEP) for Palawan Act, which shall serve as the framework to guide the government agencies concerned in the formulation and implementation of plans, programs and projects affecting the environment and natural resources of Palawan. (AJS)