Gatchalian bats anew for tighter review of Malampaya stake to Udenna Corp.

THE Department of Energy must thoroughly review the sale of the 45-percent stake of the Shell-led consortium in Malampaya gas field to the group of Davao-based businessman Dennis Uy for its implications on energy security and pricing, the chairman of the Senate energy committee stressed at the weekend.

In an interview with DWIZ radio channel, Senator Sherwin T. Gatchalian pointed out that Malampaya is critical in the energy mix, providing 40 percent of Luzon’s power needs, and the successor of the Shell Philippines Exploration B.V. (SPEX) should be financially and technically capable of operating the power facility in Palawan.

Dennis Uy-led Udenna Corp. (UC) could take over the 45-percent interest of Malampaya operator SPEX in December this year, if regulatory processes are hurdled. At a hearing he called last week, Gatchalian said that SPEX should have been more prudent in selecting its successor, as questions about UC’S financial standing were raised.

Malampaya Energy XP Pte Ltd., a unit of UC, told the committee last week foreign experts would help in the operation of the gas field, which delivers a fifth of the Philippines’ growing electricity requirements through the supply of natural gas to five power plants in Luzon.

At the same time, Gatchalian agreed that it is better for Energy Secretary Alfonso Cusi to focus more on his work at DOE, which is a fulltime and very challenging job, expressing hope that the Cabinet official would not get distracted by politics.

This, as Secretary Cusi was installed last Saturday as party president of the Pdp-laban in its national assembly that was contested by two party stalwarts— former Senate President Aquilino Koko Pimentel and Sen. Emmanuel Pacquiao, whom Cusi replaced.

Gatchalian explained to DWIZ why Malampaya is crucial: “First of all, it supplies 20 percent of the energy in households in the country. Second, here in the Meralco franchise, over 4 million homes are supplied by Malampaya.”

“So in other words,” he added, “if Malampaya is lost, 4 million homes will have no electricity. That’s why it is important that whoever comes in to operate Malampaya, must first of all have the capability to run it. Second, it must have the funds; because this is no ordinary business. It is important to our country and very technical.”

The senator said he personally visited Malampaya and was able to confirm “it is not an ordinary business and requires long experience to operate the oil rig.”

He recalled the sale of Malampaya between Shell and Chevron, adding that while they have nothing to do with the sale, in his view, the government must carefully study the deal as the asset cannot be sold to just anybody.

The senator reminded that while the government retained a 10-percent share, “it retains oversight power.

“The law is very strict in protecting what is ours, and us, Filipino citizens,” Gatchalian assured.

He noted that the law is “very strict” when it comes to providing protection to consumers.

“That was why it was placed in the law, to ensure that whoever opens business is capable” he added.