The Department of Energy (DOE) said Thursday the review of the Malampaya deals will be finished and resolved within the year, with the Philippine National Oil Co.-Exploration Corp. (PNOC-EC) likely to approve the investment deal of Prime Infrastructure Capital Inc. (Prime Infra).
“The schedules are quite tight. Even if we stretch a bit, I don’t think they would have to go beyond this year,” said Energy Secretary Raphael Lotilla during a virtual press briefing.
Prime Infra is acquiring Malampaya Energy XP Pte Ltd. (MEXP), a company previously owned by Udenna Corp. of Davao businessman Dennis Uy. According to Lotilla, PNOC-EC, which holds a 10-percent stake in the Malampaya gas project, is likely to give its consent. Still, Lotilla said, the sale is subject to the DOE’s review.
“PNOC-EC is considering the matter of giving its consent to the sale shares interest. As far as DOE is concerned, we have to review the sale and the terms of conditions under which it is going to be made,” he said.
Lotilla said the issues would be addressed within the framework of a DOE circular, which he issued when he served the same post from 2005 to 2007 during the Arroyo administration.
“I can assure you that we will try to adhere to the timelines that are in the department circular that I issued in 2007 on the renewal and approval of transfers and interest in the service contract,” he said.
The agency will tap technical and financial advisors to assist in the review. The identities of the experts, he added, will be revealed next week.
“I just want to assure the public that the DOE will exercise the utmost care and diligence in reviewing this proposal. Main objective is to ensure that the Philippine government and Filipino people will be able to take full advantage of this resource,” said Lotilla.
The Malampaya gas field, which delivers 20 percent of the country’s electricity requirements, is operated through Service Contract No. 38 (SC 38) granted to the consortium of Shell Philippines Exploration B.V. (SPEX), Chevron Malampaya (now UC38LLC), and PNOC-EC.
SPEX sold its 45-percent stake to MEXP. PNOC-EC did not give its consent to this deal. Later on, MEXP and Prime Exploration Pte. Ltd., a subsidiary of Prime Infra, signed a share purchase agreement.
Lotilla earlier said he would defer to PNOC-EC acting president and chief executive officer Franz Josef Alvarez to review the sale of SPEX’s stake.