Solon urges senators to spare Udenna-Shell Malampaya deal from publicity stunts

Surigao Del Sur Representative Johnny Pimentel urged senators to refrain from alleged "political grandstanding" over Shell Petroleum's decision to sell its operating stake, which includes the offshore Malampaya gas field, to Udenna Corp.

"We would urge our senators – especially those seeking to extend their terms in office in 2022, and who are eager to draw attention to themselves – to spare Shell from their publicity stunts," Pimentel said in a press statement.

“If we make it difficult for foreign investors like Shell to get in and get out of existing petroleum service contracts, then nobody will help us develop our vast deep-water gas deposits that we need badly to meet our growing demand for electricity,” he added.

Senator Sherwin Gatchalian earlier said the Udenna-Chevron deal on the sale of Malampaya Consortium shares was rigged, but according to the Department of Energy, the senator's allegation was "misguided and lacking in factual and legal basis."

Davao businessman Dennis Uy’s Malampaya Philippines Pte. Ltd. last year completed the buyout of the 45% Chevron Philippines’ stake in the offshore gas field in Palawan. It has since been renamed UC MPPL or UC Malampaya.

Aside from Dennis Uy’s group, the Malampaya Consortium is 45% owned by Shell Philippines Exploration B.V. (SPEX), and 10% by state-owned Philippine National Oil Co. (PNOC).

Further, Dutch petroleum giant Shell disclosed that it signed a share purchase agreement with Uy’s Malampaya Energy for the sale of its 100% shareholding in Shell Philippines Exploration B.V. (SPEX).

Pimentel said the Philippines could not afford to send the wrong signal to future foreign gas developers as "we will surely need their help in the months ahead."

"We will definitely need the likes of British Petroleum plc, Exxon Mobil Corp., Saudi Arabian Oil Co., and Total Energies SE if we want to harness our other gas supplies beneath the West Philippine Sea,” Pimentel said.

The lawmaker said he was not worried about Malampaya, but with the undeveloped Sampaguita gas discovery, located some 250 kilometers southwest of Malampaya.

"There’s no question Sampaguita’s operator will eventually have to bring in a large and proficient foreign partner to help develop the field from zero to full production,” Pimentel said.

"And we do not want all the political badgering around Shell’s Malampaya divestment to drive away prospective foreign investors that might be interested in farming into Sampaguita’s service contract,” Pimentel added. — DVM, GMA News