Cusi corrects self on Malampaya stake acquisition

By Jordeene B. Lagare – May 22, 2020
from The Manila Times

ENERGY Secretary Alfonso Cusi corrected on Thursday his earlier statement regarding PNOC Exploration Corp.’s (PNOC-EC) plan to invest in the Malampaya gas project in Palawan province.

“I wish to correct my earlier statement regarding the status of PNOC-EC’s participation in the Malampaya Gas-to-Power Project,” Cusi said in a statement.

“As part of its medium-term plan, PNOC-EC aims to increase its Malampaya shares. The company had already expressed this interest to its joint venture partners. However, further discussions could not progress due to the Covid-19 (coronavirus disease 2019) pandemic,” he added.

Even though the pandemic stalled additional talks, Cusi said in a text message they would
find ways to advance the planned transaction. “I will meet PNOC-EC board tomorrow (Friday) to discuss our way forward.”

Prior to that, the Energy chief was asked if the state-run firm would still push through with investing in the natural gas platform despite donating to the government’s Covid-19 efforts.

He told reporters during a virtual presser on May 13: “That is already covered na. Tapos na ang transaction noon pa ng PNOC-EC (The PNOC-EC has completed the acquisition of an additional interest in the project long ago).”

It was Cusi who sounded off last December that PNOC-EC intended to acquire 10 percent of Chevron Malampaya LLC’s total ownership interest in the Malampaya Deep Water Gas-to-Power Project. The contract will expire in 2024.

Shell Philippines Exploration B.V. (SPEX) — which acts as the project’s operator — holds 45 percent in the Malampaya project, while Chevron and PNOC-EC hold 45 percent and 10 percent, respectively.

However, in March this year, Udenna Corp. of Davao-based businessman Dennis Uy, through UC Malampaya Philippines Pte. Ltd., sealed the deal to acquire Chevron Philippines Ltd.’s interest in the natural gas field which is held by the Chevron unit.

Meanwhile, Cusi assured the public that the government will continue to accelerate oil and gas exploration ventures in the country to ensure long-term 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,” he said.