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The Malampaya Natural Gas Project (MNGP) Inquiries

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.


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Oct 13, 2015