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Policy & Regulation

Majors fight for sanctity of Malampaya contract

The joint venture partners are in disagreement with the Commission on Audit over the payment of income tax on the project The joint venture partners are in disagreement with the Commission on Audit over the payment of income tax on the project.
By Damon Evans 6 June 2018 Asia Pacific / Exploration & Production 0 31173
The Shell-led Malampaya project in the Philippines. (Shell)

A legal wrangle in the Philippines involving the Shell-led Malampaya venture and the Commission on Audit (COA) looks set to discourage investment in the power-hungry country and undermine its future energy security – unless the government can quickly resolve the dispute.

Shell and its joint venture partners, which include Chevron and the Philippine National Oil Co., have refused to comply with an order made in May by the COA to pay $2.8 billion in taxes dating back to 2002 for production at the...