The Petroleum Association of the Philippines said it expects the recent ruling of the International Chamber of Commerce in Singapore on the arbitration case filed by Shell Philippines Exploration B.V against the government on the Malampaya gas project’s corporate income tax issue to revitalize the oil and gas exploration industry.
The Malampaya consortium received a favorable ruling from the ICC on the tax dispute that Shell Philippines Exploration B.V. filed against the government in 2015. Spex is the operator of the Malampaya gas project in northwest Palawan with a 45-percent stake.
“The Malampaya joint venture can confirm that the International Chamber of Commerce arbitration tribunal has issued its decision, which we are currently reviewing with our legal counsels. At this stage, we cannot provide details due to the confidentiality of the proceedings, but the joint venture will be engaging the Department of Energy in due course,” Spex said.
Other members of the consortium are Chevron Malampaya LLC, with a 45-percent stake and state-owned PNOC Exploration Corp. with the remaining 10 percent.
“I have not seen the decision itself, although I have read and heard about it. I hope the government will react positively. This, of course, will be of great help to the exploration industry,” PAP chairman Rufino Bomasang said.