Metro Manila (CNN Philippines, September 28) — Holding company Udenna Corporation has expressed its interest to secure Shell Philippines’ 45 percent stake in the Malampaya project to “ensure continued safe and reliable” operations.
In a statement on Monday, the Uy-led firm, which has 45 percent interest in the natural gas project, said it is willing to work with the other consortium member , PNOC Exploration Corporation (PNOC EC), which owns the remaining 10 percent of the project.
“We, together with PNOC EC, are the most suitable party to assume Shell’s interest,” Udenna Group spokesperson Atty. Raymond Zorrilla said.
He added that the transfer of Shell’s interest should be resolved immediately to ensure continued employment of the plant’s workers, as well as continued service of the plant to customers who depend on its operations.
“It is the remaining Consortium members’ responsibility to ensure that they [employees] remain secure in the knowledge that their service to the country shall continue,” Zorrilla said. “The Malampaya facilities are run by Filipino men and women to produce energy safely and reliably to keep the lights on for every Filipino.”
Zorrilla also mentioned that the remaining members “are free of any conflicts of interest associated with ownership of downstream gas and electricity businesses.” He added that there are “complicated issues” that a new member should look into that may take time and only the existing members could evaluate these on time.
The company also assured that Shell’s exit will have no impact in the plant’s operations.
In case Shell chooses to sell its stake to a third party, Zorrilla said the company will exercise its rights as stated in the agreement and as a member of the consortium, like its pre-emptive and consent rights.
Last week, Shell said it is looking for a buyer of its stake in the Malampaya facility, which is located offshore of Palawan and is known to have rich oil deposits, in order to preserve its financial footing.
Shell started commercial oil exploration and extraction operations in Malampaya in 2001, with a second rig platform opened in 2015.
On September 25, San Miguel Corporation said it is interested in acquiring Shell’s stake from the project. SMC President and COO Ramon Ang also heads Petron Corporation, which runs the biggest oil refinery in the country.
