State-run PNOC-Exploration Corp. (PNOC-EC) has exercised its right to match the offer of Udenna Corp. from Chevron for the operation of the Malampaya gas field.
Alfonso Cusi, energy secretary, told reporters in a briefing in Taguig City on Tuesday with the move, PNOC-EC can buy 10 percent of the 45 percent stake that will be acquired by Udenna Corp.
Cusi said when finalized, PNOC-EC’s stake in the entire Malampaya project will be equivalent to 14.5 percent from the current 10 percent, while the remaining 40.5 percent will be held by Udenna Corp. and 45 percent by Shell Philippines Exploration BV.
Cusi also serves as chairman of PNOC-EC.
“We exercised the right because we feel that the acquisition price is advantageous… It’s advantageous for PNOC-EC to invest, it’s an opportunity. The returns that we see are good,” he said.
Cusi added the state-run firm’s board will have a meeting Friday to discuss the value of the acquisition.
Last month, Udenna reportedly paid as much as $560 million to acquire Chevron’s stake in the Malampaya project
The Malampaya gas field is a very strategic project as it currently provides fuel to power plants with a combined capacity of more than 3,000 megawatts. However, the service contract to operate it is set to expire by 2024.