Malampaya lifespan beyond 2027 certain

By Maria Romero – December 9, 2021 02:30 AM
from Daily Tribune

The multi-billion-dollar transactions of the subsidiaries of Udenna Corp., the diversified company of Davao City magnate Dennis Uy, involving the Malampaya deepwater gas-to-power project have been stalled over mounting oppositions due to alleged irregularities.

But the beleaguered Udenna Corp. remains unfazed.

In a television interview, Udenna Corp. president Marty Escalona said the firm continues to undertake a technical study that would help prolong the lifespan of the Malampaya facility, which was estimated by the government to run dry in six years or by 2027.

“This technical study is already in place. It’s just a matter of being allowed to drill further and maximize reserves. And yes, we are very confident that we can prolong this project even further,” Escalona said.

Tech experts abound
“The technical expertise is still there. The intention is to develop this further, to maximize the reserve that is there and to continue the drilling process to enable Malampaya to serve for the years to come.”

Although Escalona refused to disclose the definite years of assumed Malampaya life extension, he said he is confident that Udenna would be successful in doing so.

“There’s a misnomer meaning why Shell and Chevron to have their internal experts retained. Remember that drilling per se is always subcontracted to drilling experts. Even Shell and Chevron so what is to prevent our team from doing the same?” he asked.

In 2019, Udenna Corp. acquired the 45 percent stake of Chevron Malampaya LLC in the Malampaya project. Early this year, Malampaya Energy, a unit of Udenna Corp., acquired another 45 percent from Pilipinas Shell Exploration B.V. (SPEX).

The transactions gave Udenna Corp. the controlling stake at 90 percent in the Malampaya. The remaining 10 percent is held by state-run Philippine National Oil Company-Exploration Corporation (PNOC-EC).

Competitive bidding held
Relatedly, Escalona also contended that the calls to rescind the government’s transaction were “unfounded and unfair.”

“These deals were awarded based on having the 1most compelling tender, demonstrating robust technical, financial, and legal capabilities and crucially a commitment to retain Chevron and Shell’s staff who already run Malampaya — the same highly-knowledgeable and experienced staff,” he said.