The sale of the 45-percent stake of Shell Philippines Exploration B.V. in the Malampaya gas project to the Udenna Group of businessman Dennis Uy has not reached its final stage, state-run PNOC Exploration Corp. said over the weekend.
PNOC EC, which has the right of first refusal over the deal, said in a statement the board was still studying its options.
“The statements of our detractors saying that this is a done deal is entirely false and at the same time, it belittles the efforts of our board of directors and officers who have put numerous options on the table, making sure that there is sufficient evaluation to make certain the best choice emerges, not just for the company, but most importantly, for the energy security of this country and the Filipino people,” PNOC EC said.
Shell Petroleum N.V. in May signed an agreement with Malampaya Energy XP Pte. Ltd., a subsidiary of Udenna, to sell its shareholding in Spex.
The Shell Group agreed to sell its 45 percent in the Malampaya gas project to Udenna, led by businessman Dennis Uy, for $460 million. Udenna through UC Malampaya Philippines in 2019 acquired Chevron Malampaya LLC’s 45-percent interest in Service Contract 38, or the Malampaya gas-to-power project.
PNOC EC, a state-owned company, holds the remaining 10 percent in SC 38.
“It is against this backdrop that we want to assure the public, our partners, and our stakeholders that we have stringent control measures and systems in place to make certain that we come up with a sound business decision particularly to this transaction, and that we will fulfill our mandate to help sustain the growth of the economy and the social well-being of our nation,” PNOC EC said.
The officers and board of directors of the company earlier denied claims that they failed to exercise their mandate by not acquiring the stake of Chevron Malampaya.
“In the interest of justice and fair play, it is important that the public know that every decision that the PNOC EC officers and the board of directors make go through a very strict process, always keeping in mind relevant laws, rules and regulations, and PNOC EC’s contractual responsibilities and obligations to our partners,” the company said.
The company said PNOC EC is a model government-owned and controlled corporation and a consistent top contributor of remittances to the national government.
“We go about our work strictly adhering to ethical standards of fairness, honesty and accountability in all our undertakings. All actions of our officers and board of directors will stand scrutiny in any court of law,” it said.
