P8 B Malampaya royalties can temper oil price hikes

The P8-billion windfall the government will receive as royalties this year from the offshore Malampaya natural gas project can be utilized for easing the people's burden on continuous oil price hikes, Rep. Johnny Pimentel said yesterday.

- By DELON PORCALLA

Royalties are payments received by the government in return for the Malampaya consortium's right to harvest the gas field's reserves, Pimentel noted.

"Malampaya is not just about government royalties. It is about the country's energy independence and security. We need indigenous gas supplies to reduce import dependence and to insulate the country from harmful global fuel price shocks," he said.