DOE to review controversial Malampaya deal

State-owned PNOC Exploration Corp. (PNOC-EC) examines the transfer of Malampaya shares from global oil giant Shell to Udenna Group led by Davao City businessman Dennis Uy amid lingering questions over the deal’s validity and erosion rapid commercial activity. amount of natural gas produced.

Energy Secretary Rapahel Lotilla, who is also chairman of PNOC-EC, told a briefing on Tuesday that new PNOC-EC chairman Franz Alvarez was leading a team to assess the Shell deal. -Udenna.

“They (the team) should talk about it with the PNOC-EC board soon because there are certain deadlines to meet,” Lotilla said.

The energy chief said he had also ensured that the PNOC-EC board would have a complement of professional and competent advisers or consultants to assess the matter.

“I also have great faith in the career people at PNOC-EC who, along with the consultants, are helping the Board and Chairman Alvarez ensure that the necessary due diligence is performed,” Lotilla said. “From there, it (the case) would go [be referred] at the DOE (Department of Energy).

In November 2019, Udenna announced that its wholly owned subsidiary, UC Malampaya Philippines Pte Ltd. had signed with Chevron Philippines Ltd. a sale and purchase agreement for 100% of the shares of Chevron Malampaya LLC, which held a 45% non-operating interest in the Malampaya Gas to Power Project.

In September 2020, Shell announced its intention to divest Shell Philippines Exploration BV, which held the operator’s 45% stake in Malampaya. Udenna quickly expressed interest in assuming operator status in Malampaya.

Subsequent Senate hearings revealed that the Udenna-Chevron deal was signed about two weeks before it was made public.

Udenna’s announcement of the closing of the transaction on March 11, 2020 was quicker; it was done just a day after the fact. INQ

Read more

Don’t miss the latest news and information.

Subscribe to INQUIRER PLUS to access The Philippine Daily Inquirer and over 70 titles, share up to 5 gadgets, listen to the news, download as early as 4am and share articles on social media. Call 896 6000.

For comments, complaints or inquiries, contact us.

About Geraldine Higgins

Check Also

Imperial College London: Inside the university that studies | Education

Deep inside Imperial’s South Kensington campus, teams of current and former students use laptops, run …