‘Be transparent,’ Gatchalian said on DOE-Shell deal over Malampaya

On Jul 5, 2021

SENATOR Sherwin ‘Win’ Gatchalian reiterated his call for the Department of Energy (DOE) to be transparent in its review of the sale of Shell Philippines Exploration BV’s (SPEX) entire stake in the Malampaya gas field project to Malampaya Energy XP Pte. Ltd., a subsidiary of Udenna Corporation owned by businessman Dennis Uy.

Gatchalian, chair of the Senate Committee on Energy, made the call after DOE secretary, Alfonso Cusi, said the department is still in the process of “evaluating” the transaction.

Cusi also said no decision has been reached as the parties concerned still have to comply with the requirements of the government before it gives its stamp of approval on the sale that reports said took place last May.

“This is no ordinary asset,” Gatchalian reminded energy officials.

“What are the sets of criteria that they will use in evaluating this transaction? It has to be very clear to the public.”

Last April 15, Gatchalian also sought justification from the DOE on its decision to give the green light on the transfer of Chevron’s 45 percent interest in the Malampaya project to UC Malampaya Philippines, another subsidiary of Udenna Corporation.

Gatchalian underscored the significance in acquiring Shell’s stake as the company not only holds a 45 percent share but also the operatorship of Service Contract No. 38, a deepwater license that comprises the Malampaya gas field.

“Whoever steps in to take the place of Shell will supply gas to our homes. Malampaya gas project powers about one in every five homes in Luzon. It’s important that we keep our lights on, that we have a constant supply of gas and in order to do that, we need to have very competent and financially strong operators,” the senator emphasized.

“The government, through the DOE, needs to evaluate the transaction and ensure that it’s legal and that the new operator is financially and technically competent and has the capability of running Malampaya and supplying electricity to our homes,” he added.