The Department of Energy (DOE) will decide on the pending change of ownership in the Malampaya natural gas resource within the year.
DOE Secretary Raphael Lotilla in an online briefing yesterday said the agency will tap technical and financial advisors to help it review aspects of the proposed sale.
The DOE is set to decide on the sale of Shell Philippines Exploration B.V.’s stake in the Malampaya gas project to Malampaya Energy XP Pte Ltd., a company previously owned by Udenna Corp. that was sold to Prime Infrastructure Capital Inc. of businessman Enrique Razon Jr.
Lotilla said PNOC Exploration Corp. (PNOC-EC) is also considering granting its consent to the sale of Shell’s interest to Prime Infrastructure, but this is still subject to review by the DOE.
“…we should examine the department circular. The schedules are quite tight and those schedules, even if stretched a bit, I don’t think that they would have to go beyond this year,” Lotilla said.
The DOE said as per process, PNOC-EC, which has 10 percent stake in the Malampaya project, must first give its consent.
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, another subsidiary of Udenna Corp.
“The PNOC-EC is considering the matter of giving its consent to the sale of Shell’s interest and as far as the DOE is concerned, we would have to review the sale and the terms and conditions under which it is going to be made,” Lotilla said.
“But I can assure 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. I realize the deadlines there are tight but as much as possible, we would like to address these issues within the framework of that department circular,” Lotilla added.
Prime Infrastructure vowed to invest in the expansion of Malampaya’s operations as well as to provide the necessary infrastructure to support the development of natural gas in the area. – Jed Macapagal
