Amid questions on its pending takeover of the Malampaya gas resource, Udenna Corp. said it still considers the asset a worthy investment.
“…It is very much worth it. For the first time after three decades, Malampaya will be managed by Filipinos, for Filipinos, fully focused on national priorities,” said Marty Escalona, Udenna president, in an online briefing yesterday.
Udenna first acquired 45 percent of Malampaya from Chevron Malampaya LLC that was under Chevron Philippines Ltd. Recently, through Malampaya Energy XP Pte Ltd., Udenna also purchased Shell Philippines Exploration B.V.’s (SPEX) other 45-percent operating interest in Malampaya to bring its total interest to 90 percent.
The remaining 10 percent is held by state-owned Philippine National Oil Co. Exploration Corp.
However, business groups and the Senate questioned the company’s alleged lack experience and financial capability to purchase such an asset.
Senate committee on energy chairman Sherwin Gatchalian said the Department of Energy (DOE) approved the sale of Chevron Malampaya’s 45 percent stake to Udenna Malampaya LLC even if the agency knew there was insufficient legal basis.
Gatchalian also warned the possibility of the government entering into a midnight deal to extend the service contract of the Malampaya project with SPEX finalizing the transfer of its participating interest to Udenna Corp.
Despite the criticism, Escalona said Udenna is focused on an “urgently needed rejuvenation program” of Malampaya with the planned drilling campaign within the service contract 38 license area to add energy reserves and extend the life of the asset.
Escalona said the company will evaluate well and production enhancement technologies to improve recovery from the main Malampaya field in the near term to provide continued safe, reliable and sustainable natural gas supply.
“Malampaya will also continue to invest in Filipino upstream talent and expertise and commits to develop more jobs to Filipinos and supply chain opportunities for local businesses as it continues to grow its energy businesses,” Escalona said.
