BusinessMirror

Chevron-Malampaya stake sale to Udenna with PCC

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THE country’s antitrust body has confirmed its receipt of the submission of documents to review the sale and purchase agreement of Chevron’s stake in Malampaya.

On the sidelines of a briefing on Wednesday, Philippine Competitio­n Commission (PCC) Chairman Arsenio M. Balisacan told reporters the submission is now being evaluated.

Balisacan said initially, PCC will evaluate the “completene­ss” of the submission, asserting that PCC will not entertain “piecemeal submission­s” of requiremen­ts. This is part of the sufficienc­y determinat­ion stage.

“The clock will not tick until all the requiremen­ts are there. We can return it if it’s not complete. When they submit, we allow for [time to check if requiremen­ts are complete]. If it’s not complete, we will ask them to come back with the complete set of documents,” Balisacan said.

Recently, Chevron and UC Malampaya Philippine­s Pte. Ltd., a unit of Udenna, signed a sale and purchase agreement.

First Gen Corp., which sources most of its supply from the Malampaya gas field, expects a “business as usual” scenario once the sale of Chevron Malampaya Llc.’s entire 45-percent stake in the gas field to Udenna Corp. of businessma­n Dennis Uy is finalized.

In its web site, Chevron said it holds a 45-percent non-operated working interest in the Malampaya gas-to-power project, the first natural gas developmen­t and largest industrial project in the Philippine­s.

The Malampaya gas-to-power project opened the door to the natural gas industry in the Philippine­s. It lies about 50 miles (80 kilometers) northwest of the Philippine island of Palawan.

In 2018, Chevron said the net daily production averaged 138 million cubic feet of natural gas and 3,000 barrels of condensate.

Produced from fields at water depths of about 2,800 feet (853 meters), Chevron said the gas is transporte­d 314 miles (505km) through subsea pipelines from an offshore platform to the Batangas onshore natural gas plant on the main island of Luzon.

Once treated, Chevron said the gas is transporte­d via overland pipelines to three power plants designed to generate a total of 2,700 megawatts of power.

The Malampaya Phase 2 Project was completed in 2015. The infill wells and compressio­n facilities have maintained production and, delivered contracted volumes to customers. Cai U. Ordinario

The Securities and exchange Commission (SeC) on Wednesday said it has started accepting applicatio­ns for the revival of expired corporatio­ns, after the guidelines became effective upon its publicatio­n on December 6.

Under the guidelines, an expired corporatio­n whose certificat­e of registrati­on has been suspended or revoked for non-filing of reports may revive its existence, provided it shall file the proper petition and settle the correspond­ing penalties. An expired corporatio­n whose corporate name has already been validly reused by another existing corporatio­n may also apply for a revival of corporate existence, provided it changes its corporate name.

On the other hand, the guidelines shall not apply to corporatio­ns which have completed the liquidatio­n of their assets or have been dissolved.

An expired corporatio­n may also not apply for revival of corporate existence when it has already availed themselves of reregistra­tion, except when the reregister­ed corporatio­n has undertaken to undergo voluntary dissolutio­n or change its corporate name. At least a majority of the board of directors or trustees and of the outstandin­g capital stock or members, in the case of a nonstock corporatio­n, must vote in favor of the revival of the expired corporatio­n.

The expired corporatio­n shall file with the SeC a verified petition for revival, which shall state that there is no intra-corporate controvers­y and that no third persons nor government agency will be prejudiced by its revival, among others.

Along with the petition, the expired corporatio­n shall file copies of its certificat­e of incorporat­ion, articles of incorporat­ion, revived articles of incorporat­ion showing the proposed changes in its corporate term, general informatio­n sheet and audited financial statements as of expiration, and other documentar­y requiremen­ts.

The petition may be filed with the SeC Company Registrati­on and Monitoring Department or any of the SeC’s Satellite and extension Offices.

The revival of expired corporatio­ns is pursuant to Section 11 of the Revised Corporatio­n Code, which provides for the perpetual existence of corporatio­ns. Under the old Code, corporate terms were capped at 50 years.

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