MVP submits bid to acquire Malampaya shares

MANUEL Pangilinan has submitted a proposal to acquire Shell Philippines Exploration BVs (SPEX) stake in the $4.5-billion Malampaya gas field project.

Pangilinan disclosed that his group submitted last Friday a «non-final binding offer”to SPEX for the 45-percent shares in the Malampaya natural gas field.

The submission was made through First Pacific Co. Ltd. with listed PXP Energy Corp., along with «one or two” entities under his group of companies.

Its a group effort that made the offer,”said Pangilinan during a virtual briefing of Manila Electric Co. (Meralco) held on Monday.

Pangilinan serves as chairman of Meralco and PXP Energy. He is also the managing director and chief executive officer of First Pacific.

SPEX disclosed last year it is ditching its interest in the said deep water gas-to-power project.

SPEX is the operator of SC 38, which covers the natural gas project. Udenna Corp. subsidiary UC Malampaya Philippines Pte. Ltd. owns another 45 percent that it previously bought from Chevron Philippines Ltd. unit Chevron Malampaya LLC. PNOC Exploration Corp., meanwhile, holds the remaining 10 percent.

This is not the first time the tycoon has signified his company›s interest in the Malampaya natural gas platform.

In November 2019, PXP Energy submitted an unsolicited proposal to the Department of Energy (DoE) to develop and utilize an integrated gas hub in the Malampaya project.

The agency, however, rejected PXP Energy›s proposal at that time since the area was covered by SC 38 that expires in 2024.

The DoE likewise cited its Philippines Conventional Energy Contracting Program, wherein there are two ways to award service contracts and oil exploration permits: choosing from the 14 pre-determined areas; or proposing an area that an entity intends to explore.

PXP Energy had asked the Energy department to reconsider its unsolicited offer but the later turned down again the proposal, reiterating its position that the agency cannot accommodate bids for any area with an existing service contract.