Connect with us

Hi, what are you looking for?

News

Senator rejects DoE claim of hearings hindering Malampaya development

SHELL GLOBAL

SENATOR Sherwin T. Gatchalian, who chairs the chamber’s energy committee, rejected the Energy department’s claim that legislative hearings are delaying work on the Malampaya gas field amid an investigation into the project’s change in ownership.

“It is the responsibility of the consortium to fulfill their commitment and if there’s any ongoing delay in fulfilling their work program, it’s the DoE’s responsibility to hold the consortium accountable,” Mr. Gatchalian said in a statement Wednesday.

“We at the Senate are exercising our oversight functions as part of the check and balance mechanism in the government given the significant role that the Malampaya gas field plays in our country’s energy security,” he added.

The Department of Energy (DoE) has said Malampaya consortium members are seeing their timelines for doing work on the field delayed after a series of public hearings into their transactions.

“It is unfair to accuse the Senate of delaying any timeline or work program of the consortium,” Mr. Gatchalian said.

In March 2020, Udenna group unit UC Malampaya Philippines Pte. Ltd. acquired Chevron Malampaya’s 45% stake in the gas-to-power project, which was approved by the DoE.

Earlier this year, Shell Petroleum N.V. reached a deal with another Udenna subsidiary, Malampaya Energy XP Pte Ltd., to acquire the 45% stake held by the project’s operator Shell Philippines Exploration B.V.

The DoE is currently reviewing the technical, financial, and legal aspects of the Shell-Udenna deal.

In a statement earlier this week, Udenna Spokesperson Allan Raymond T. Zorilla said the Chevron and Shell deals were compliant with government bidding rules.

“The share sales were above board and legal and had to pass thorough scrutiny by Philippine regulators, international lenders, and the private multinationals involved,” he said.

According to Mr. Zorilla, both UC Malampaya and Malampaya Energy XP are qualified to hold stakes in the project.

“We were awarded because of the depth of our understanding of the business — how it should be managed and how it can be rejuvenated.”

The DoE has said that Udenna’s deals with Chevron Philippines, which owned Chevron Malampaya; and Shell Petroleum N.V., were in line with “rigorous” global standards.

In a statement on Oct. 26, the department said no law which compels it to review the sale of shares between private companies, but it decided to review the Shell-Udenna deal anyway since the gas field accounts for a significant portion of the power mix.

The remaining 10% of the Malampaya project is held by the Philippine National Oil Co.-Exploration Corp.

Located off northwest Palawan, the Malampaya field fuels five power plants on Luzon with a combined capacity of 3,200 megawatts.

The Energy department has said that the gas field’s reserves are expected to be commercially depleted by 2027. — Angelica Y. Yang

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

News

A worker of Ayala Corp’s Integrated Micro-Electronics Inc. (IMI) solders an automotive computer component part at an electronics assembly line in Binan, Laguna south...

News

MARI GIMENEZ-UNSPLASH THE NATIONAL Government plans to borrow P200 billion from the domestic market in July, the Bureau of the Treasury (BTr) said on...

News

SCOTT GRAHAM-UNSPLASH PHILIPPINE PRESIDENT Rodrigo R. Duterte has signed an order updating the list of investment areas where foreign ownership is limited or barred....

News

ETIENNE GIRARDET-UNSPLASH WHOLESALE PRICES of building materials in Metro Manila jumped to their highest in more than a decade in May as construction activities...

News

MAYNILAD Water Services, Inc. targets to distribute starting in July up to 10 million liters per day (MLD) of its “new water” or treated...

News

SOLAR Philippines Power Project Holdings, Inc. was able to forge contracts for at least 60% of the 10 gigawatts (GW) of energy capacity that...

You May Also Like

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Financial Advisors

The healthcare ecosystem is one that has thrived on the cusp of scientific progress, benefitting enormously from the winds of change in the technological...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.