Pangilinan asks: Why did PH give up on prized Malampaya to go to China-funded upstart?

Pangilinan asks: Why did PH give up on prized Malampaya to go to China-funded upstart?

By Ernie Reyes

MANILA — Senator Francis Pangilinan wants to know why the prized
Malampaya natural gas project went to the upstart Udenna Corporation
when the government has the power to exert its stake over the
country’s crucial energy asset.

During deliberations of the 2022 budget of the Department of Energy
(DOE) almost midnight Tuesday (16 November 2021), Pangilinan asked
concerned officials to explain government’s failure to exercise its
right of first refusal, which would have given it the option to keep
control of the natural gas field that provides 40% of Luzon’s energy
needs.

“It is very disturbing to listen to the reason given why the
Department of Energy did not consider taking or exercising its right
of first refusal on the basis of a sweeping, general statement of
negative facts and constraints,” Pangilinan said.

“We are given just a broad statement to justify the turnover to a
private corporation of a billion-dollar worth of assets. This is
incredulous. We deserve a better explanation,” he added.

Amid the controversy, the approval of the DOE budget and its attached
agencies was deferred.
Energy officials were to present relevant documents and decisions
justifying the sale to Udenna, minutes of the meetings related to the
decision, and various services of contracts.

Pangilinan pointed out that the DOE cannot wash its hands off the
Malampaya sale controversy since its secretary heads the board of
directors of the Philippine National Oil Company-Exploration
Corporation (PNOC-EC), which dealt with the matter.

Earlier, Energy Secretary Alfonsi Cusi said negative factors
constrained the agency from pursuing its stake in Malampaya after
Shell divested from the project.

Udenna of businessman Dennis Uy, a close associate of the president,
holds 45% interest in the project after buying out American energy
firm Chevron’s stake in 2019. It increased its stake to 90 percent
this year when Shell Philippines Exploration B.V. decided to exit the
gas field in a $460-million deal. PNOC-EC, meanwhile, holds 10%.

Uy is also a partner of the China National Offshore Oil Corp. (CNOOC),
a Chinese state-owned commercial company, in a Liquefied Natural Gas
terminal project in Batangas.

“Let’s look at the numbers, so we will completely understand the
decision. It needs more justification,” Pangilinan said.

“What really is at stake here is our energy security and the interest
of the Filipino people who have equal rights over the natural
resources and wealth of our country,” he added.

Earlier, several business groups lamented that the sale to Udenna,
which was incorporated in Singapore only September 2019, has placed
the government at the losing end.

They said government may have given up tens in billions of pesos in
revenues from the natural gas field. They said this was detrimental
especially at a time when the state needs money as it deals with the
impact of the Covid-19 pandemic. (ai/mtvn)

Leave a Reply