Shell can’t proceed with Malampaya deal sans PNOC-EC consent
Malampaya natural gas plant. Source: https://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.
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.
“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.
