Plan to raise stake in Malampaya must be reevaluated

The government’s plan to raise its stake in the Malampaya deep water-gas-to-power project would need to go through rigorous evaluation again, according to Energy Secretary Alfonso Cusi.

Cusi, however, said that increasing the Philippine National Oil Co.-Exploration Corp. (PNOC-EC)’s stake in Malampaya would still be a plus for the government.

“I think so. But this will need a comprehensive restudy based on prevailing landscape,” Cusi said in a text message to The STAR.

The coronavirus pandemic stalled PNOC-EC to exercise its right to match Udenna Corp.’s acquisition of the 45 percent ownership of Chevron Malampaya LLC.

The state-run firm matched Udenna’s offer equivalent to its existing 10 percent interest in Malampaya. However, the energy chief said further discussions failed to progress due to the pandemic.

Cusi, who is also the ex-officio chairman of PNOC-EC, said the state-run firm’s board would meet again “to discuss our way forward” on the Malampaya project.

The decision to exercise PNOC-EC’s right to match is to take advantage of the opportunity to increase its stake in Malampaya, which would provide the government with good returns in the future.

The Malampaya gas project supplies fuel to around 40 percent of gas-fired plants in Luzon with over 3,000 MW in capacity.

While the contract will end in 2024, supply from the Malampaya gas field is projected to be depleted by early 2022 or latest by 2027.

The energy chief also said the government owned and controlled corporation would still pursue projects to help achieve the country’s energy security.

“Despite this, PNOC-EC will continue its efforts to focus on oil and gas exploration and production to address the increase in the energy requirements of the country,” Cusi said.