The Department of Energy (DOE) is set to release in November the findings of its review of the Udenna Corp. subsidiary’s acquisition of a controlling stake in the Malampaya gas-to-power facility.
“By November, we hope to be able to finalize things,” Energy Assistant Secretary Gerardo Erguiza Jr. said at a virtual press briefing on Friday.
In May, Dutch petroleum giant Shell disclosed that it signed a share purchase agreement with Dennis Uy’s Malampaya Energy XP Pte. Ltd., a subsidiary of Udenna, for the sale of its 100% shareholding in Shell Philippines Exploration B.V. (SPEX), which holds 45% operating interest in Service Contract 38 or the Malampaya gas field.
The base consideration for the sale was $380 million, with additional payments of up to $80 million between 2022 and 2024 contingent on asset performance and commodity prices.
The transaction was subject to the review and approval by the DOE in accordance with Presidential Decree 87 or the Oil Exploration and Development Act of 1972.
“DOE has to see to it that people who will be running the Malampaya project have the competency [and] knowledgeable so our energy security will not be put at risk,” Erguiza said.
Uy’s planned takeover of the Malampaya facility is the subject of the graft complaint filed before the Office of the Ombudsman against Energy Secretary Alfonso Cusi, Uy, and officials of Chevron Philippines and Shell Philippines Exploration B.V.
With the sale of Shell’s Malampaya stake to Malampaya Energy, Uy’s company will now hold 90% control of the gas field in offshore Palawan.
Uy’s company bought out Chevron Philippines’ share in the Malampaya Consortium last year, which had 45% participating interest in SC 38.
Before Uy’s planned takeover, the Malampaya Consortium was composed of SPEX, Chevron, and the Philippine National Oil Company-Exploration Corporation, which still holds 10% interest in the gas field.
The Malampaya gas-to-power facility fuels three gas-fired power plants with a total generating capacity of 2,700 megawatts (MW), providing up to 30% of the power generation needs of Luzon.
Connected to onshore gas plants in Batangas, the Malampaya offshore facility in northern Palawan was inaugurated in 2001. — VBL, GMA News
Decision on Udenna-Shell Malampaya deal out next month — DOE
Source: News Panda Philippines
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