This paper was prepared in response to various legislative inquiries on the exploration and operation of the Malampaya Natural Gas Project (MNGP). Specifically, the discussion revolves around the following issues: (a) COA findings with regard to the net share in MNGP proceeds between the Philippine government and service contractor, (b) share of local government and/or province of Palawan, (c) allocation of Philippine government share, and (d) presidential prerogative in the allocation of funds/proceeds. Considering that other service contracts will be negotiated sooner or later, it is best that clear-cut policies be set by the government to protect public interest and prevent misinterpretation.