The Department of Energy (DOE) said the ongoing review of Prime Infrastructure Capital Inc.’s acquisition of a controlling stake in the Malampaya natural gas resource is ontrack, citing that its timely resolution is vital to the country’s energy security.
“Just to assure you that the review by the PNOC-Exploration Corp. (PNOC-EC) on Prime Infra’s acquisition is on track and the notification to the DOE, having been received, that is also moving in parallel,” said Energy Secretary Raphael Lotilla in an online news briefing yesterday.
Lotilla said the current Malampaya gas field is a “finite one” and the resolution of legal, technical and financial issues on the sale of its operator Shell Philippines Exploration’s interest to Prime Infra is crucial.
Earlier, the DOE said the review on the Malampaya deals would be finished and resolved within the year, with PNOC-EC likely to give its consent to Prime Infra’s investment deal.
Until the sale is deemed completed, Shell owns 45 percent participating interest in the Malampaya project and is considered the operator, with the other 45 percent held by UC38 LLC, a subsidiary of Udenna Corp., and the remaining 10 percent owned by the Philippine government through PNOC-EC.
Amid this development, Lotilla also bared yesterday the members of thetechnical and financial committees and the consultants who will assist the DOE in reviewing the proposed change of operatorship in Malampaya.
The DOE said the technical review committee will be chaired by Rufino Bomasang with members to include Francisco Delfin Jr. and Froilan Tampinco, while Edgar Benedict Cutiongco will serve as a consultant.
Bomasang was a former chief of the PNOC-EC while Delfin Jr. served as DOE undersecretary.Tampinco previously held the leadership of the National Power Corp.
Cutiongco is the current president of the Philippine Petroleum Association of the Upstream Industry and a senior lecturer at the University of the Philippines National Institute of Geological Sciences.
The financial review committee will be chaired by Roberto Manabat with J. Carlitos Cruz and Gabriel Singson Jr. as members. Ephyro Luis Amatongwill serve as a consultant.
For the legal aspect, lawyer Luis Ma. Uranza will serve as a consultant.
Manabat is a former senior partner of SGV & Co. and served as an independent director of several private companies, while Cruz was the former chairman and managing partner of SGV & Co and is currently a trustee of the Makati Business Club.
Singson was a former undersecretary of the Department of Finance. Amatong previously served as a commissioner of the Securities and Exchange Commission.
The DOE saidUranza, who will serve as a legal consultant, is an expert in corporate law and financial rehabilitation, criminal, civil and commercial law apart from being a former director of PNOC-EC.
“In availing of the expertise of these individuals, we want to assure the public that the DOE will exercise the utmost care and diligence, in carrying out its mandate involving the country’s upstream oil and gas sector in general, including the country’s biggest gas-to-power initiative to date, the Malampaya-Camago project,” Lotilla stressed.
He added the pool of advisers is expected to assist the DOE “in ensuring that its decisions on matters relating to the Malampaya service contract consider all the relevant factors and are founded on sound technical analyses.”
Last week, Lotilla also announced the formation of an advisory panel led by former Chief Justices Artemio Panganiban and Renato Puno to ensure that future energy policy recommendations to the president and Congress are fully grounded on the Constitution. –Jed Macapagal
