Shell can't proceed with Malampaya deal sans PNOC-EC consent | Inquirer Business

Shell can’t proceed with Malampaya deal sans PNOC-EC consent

By: - Reporter / @MAgerINQ
/ 07:06 PM December 15, 2021

Malampaya natural gas plant. Source: http://malampaya.com/

MANILA, Philippines — Without the consent of the Philippine National Oil Company-Exploration Corporation (PNOC-EC), Shell  could not proceed with its sale of its 45-percent operating stake in the Malampaya natural gas project.

This is according to Shell Philippines Exploration (SPEX) B.V  legal manager  Kiril Caral  after PNOC-EC has decided  to withhold  its consent on the sale to Malampaya Energy XP., a subsidiary of  Dennis Uy’s  Udenna Corporation.

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At  Wednesday’s hearing of the Senate committee on energy, Caral confirmed that Shell  has been notified  about the  state-run firm’s decision.

According to Caral, PNOC-EC did not explain in its letter the reasons why they were  “withholding” its consent  on the sale of  the oil giant’s share in Malampaya.

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“Of course we are very disappointed at the outcome of the decision of PNOC-EC,” Caral said.

“However, we will continue to  engage with them  to find out if there’s anything that we can do  to address the concerns that might have led them  to this decision,” he said.

Senator Sherwin Gatchalian,  chairman of the committee, later asked if Shell would still pursue  the sale of its  Malampaya’s share  to Uy’s group.

“Without the consent of  PNOC-EC, we will not  be able to proceed with completion at the moment Mr.  chair,”  Caral said.

Without the consent of parties  involved, Energy Secretary  Alfonso Cusi  conceded that  they could not proceed with the evaluation of  the Shell’s deal  in the natural  gas project.

“What’s the purpose of continuing evaluation if there’s no consummation or there’s no consent by the parties?”  Cusi said, responding to Gatchalian’s question.

JPV

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TAGS: Business, Dennis Uy, Malampaya, PNOC-EC, Shell
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