Metro Manila (CNN Philippines, December 15) — The Philippine National Oil Company-Exploration Corporation (PNOC-EC) is withholding consent to the sale of Shell’s shares in the Malampaya gas project, an official said Wednesday.
PNOC-EC chief Rozzano Briguez made the revelation during a hearing by the Senate Committee on Energy, which is looking into Udenna Corporation’s buyout of a majority stake in Malampaya.
Udenna is owned by Davao-based businessman Dennis Uy.
“As of 13 December 2021, PNOC-EC has officially communicated that PNOC-EC is withholding its consent to the transaction,” Briguez told senators.
When asked how this would affect the deal, Briguez said it would depend on Shell.
He also refused to disclose the reason behind the decision out of respect to the parties involved since the notice was only issued two days ago.
“We don’t know, we cannot enforce that as of now. We don’t know how the operator will move forward from here but I think it’s enough that we told them that we are withholding our consent,” Briguez explained.
Senate energy committee chairman Senator Sherwin Gatchalian assumed the deal will no longer happen.
Shell legal counsel Atty. Kiril Caral confirmed they have received the notice from PNOC-EC.
Caral said the deal will not be able to proceed for now. Uy will have 90-percent ownership in the Malampaya gas field if the deal pushes through.
“We are very disappointed at the outcome of the decision of the PNOC-EC. However, we will continue to engage with them to find out if there is anything we can do to address the concerns that may have led them to this decision,” Caral said.
Aside from the Department of Energy’s approval, the PNOC-EC, as member of the Malampaya consortium, also needs to consent to the transaction.
The state-run oil company also holds a 10% stake in the Malampaya project.
