MANILA, Philippines — Big news! Energy Secretary Sharon Garin is celebrating a major win after the Supreme Court (SC) made a final decision about the money earned from the Malampaya Natural Gas Project, one of the Philippines’ most important sources of energy.
This new ruling makes things clearer and fairer, and Garin believes it will attract more companies from other countries to come explore and invest in the Philippines for oil and gas.
🛢️ What Is the Malampaya Project?
The Malampaya Project is like a big treasure under the sea — it brings up natural gas, which helps power many homes, buildings, and even factories across the country. The project is run by both the Philippine government and private companies like Shell, Chevron, and PNOC (Philippine National Oil Company).
These companies have been working together for years, but there was a big problem about who pays taxes and how much of the money should go to the government.
⚖️ What Did the Supreme Court Decide?
The Supreme Court said that the Philippine government’s share of the profits from the Malampaya Project already includes the income taxes owed by the contractors.
In short: the taxes are already counted in the government’s 60% cut of the project earnings, so the companies don’t need to pay again.
This ruling cancelled the P53-billion charges made earlier by the Commission on Audit (COA). The SC said the COA was wrong, and the companies were not breaking any rules.
The ruling was written by Associate Justice Japar Dimaampao, and while the decision was made in February, it was only made public in July.
💬 Garin: This Is Good News for Investors
After the Supreme Court’s decision, Energy Secretary Sharon Garin was clearly relieved and excited. She said this clears up a lot of confusion and gives companies more confidence to invest.
“I’m happy they finally know what the rules are,” Garin said.
“Before, they didn’t know if they’d be charged or not. Now they do — and I think that will bring more foreign investors to the Philippines.”
She explained that clear rules and fair treatment make the country look more attractive to energy companies who might want to explore for oil and gas in the future.
📜 A Quick Look at the Law
This all goes back to a law called Presidential Decree 87, also known as the Oil Exploration and Development Act. It says that private contractors must give 60% of their net earnings from oil or gas projects to the government.
The SC confirmed that even if the companies pay taxes, those taxes are part of that 60% share. That means they’re not avoiding taxes — they’re already covered.
“Tax assumption is not tax exemption,” the court explained.
The taxes are still being paid — just included in the total government share.
✅ What Happens Now?
With the Supreme Court ruling final, the private companies are no longer being charged for extra tax. Investors now feel more secure, and the government can expect more energy partners to come in and explore resources that could power more homes and businesses.
For Sharon Garin and the Department of Energy, this ruling is a big step toward stronger partnerships, more energy, and a better investment future for the country.
