Dennis Uy wants full control over Malampaya gas field

A STAUNCH presidential supporter is eyeing full control over Malampaya gas field which supplies 30 percent of the country’s energy requirement.

Uy’s Udenna Corporation, which already owns 45 percent of Malampaya, has formally expressed interest to secure another 45 percent stake currently held by Shell Corporation.

Should Udenna be able to compel Shell to sell its stakes at the Malampaya, the Uy-controlled corporation would have 90 percent ownership of the vital energy facility. The remaining 10 percent is owned by the government, through the Philippine National Oil Company Exploration Corporation (PNOC-EC).

Shell has earlier hinted at divesting its 45 percent interest in the deep water gas-to-power project.

The Malampaya gas field is one of the most important energy projects in the country, supplying an estimated 30 percent of energy in the Philippines. The gas field began as a private-public project between the government and Shell in 2001, and the contract is set to expire on 2024, by which the gas field will be turned over to the government.

Udenna is the new player on the playing field after acquiring the 45 percent stake of Chevron Malampaya LLC, which exited the consortium in March, 2020.

In a statement, Udenna expressed its interest to acquire Shell’s divested stake, as by right since Udenna is already an existing member of the consortium, adding that it is the “logical” choice. The group argued that bringing in a new consortium member would be a complicated process that would take time to evaluate.

“The Udenna Group firmly believes that Malampaya is a high-quality asset, strategic to the future welfare and energy security of the country and welcome our partner PNOC Exploration Corporation to join us in taking over the field on a 100 percent basis,” said Atty. Raymond Zorilla, spokesperson for Udenna Group.

“We, together with PNOC-EC, are the most suitable party to assume Shell’s interest. We will exercise this right as provided in our joint venture agreement…Should Shell not consider their existing partners but put forth a decision to sell its stake to another third party, Udenna will rely on its rights as stipulated in the agreement and as a member of the consortium, such as pre-emptive and consent rights.”