Sunday, 03 August 2025, 9:16 pm

    SC ruling on Malampaya tax spurs DOE optimism

    The Department of Energy (DOE) expressed optimism for increased oil and gas investments following a recent Supreme Court (SC) ruling on the Malampaya natural gas project. The SC ruled the income tax due private contractors already form part of the government’s 60 percent share of the project’s net proceeds, overturning earlier Commission on Audit (COA) findings that sought P53.14 billion in back taxes from Shell Exploration B.V., PNOC Exploration Corp., and Chevron Malampaya LLC.

    DOE Secretary Sharon Garin said the decision provides legal clarity and investment stability, potentially encouraging more participation in the country’s petroleum and gas exploration sector.

    The ruling affirms a provision in the Oil Exploration and Development Act, which allows the government to shoulder contractors’ income tax to promote private investment.

    The Philippines has 15 active petroleum service contracts at the moment, of which 11 are in the exploration phase plus four more in production, including Malampaya.

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