Press Release
May 20, 2021

Gatchalian compels DOE to divulge plans on Malampaya operations

Senator Win Gatchalian compelled the Department of Energy (DOE) to divulge its plans and programs on Malampaya in light of the divestment of its operator Shell Philippines Exploration B.V. (SPEX) and the nearing expiration of Petroleum Service Contract (SC) No. 38 or the Malampaya deep water gas-to-power project to ensure the future of its operations and the continuous supply of energy in the country.

"Given the significant role that the Malampaya project plays in the Philippines' energy security, it is imperative that the DOE apprise the Filipino public on Malampaya's operations -- the remaining natural gas reserves and the government's plans for continuous energy supply, likewise on the pending request for the extension of SC No. 38,"the senator said in filing Resolution No. 724.

Gatchalian's Committee on Energy will conduct an inquiry into the status of the sale of the stake of SPEX and the basis for the DOE's decision if it approves the sale. The senator also wants to know the DOE's direction amid the impending expiration of Malampaya's service contract less than three years from now.

SPEX, in September last year, announced plans to put up for sale its 45% interest in the Malampaya project. The other holder of the 45% interest, Chevron Malampaya LLC sold its stake to UC Malampaya Philippines in March last year. Completing the consortium is the state-run Philippine National Oil Company-Exploration Corp. (PNOC-EC) which has the minority interest of 10%.

"It is critical for the DOE to ensure that whoever gets hold of Shell's interest should have, not just similar experience or capacity, but more so the technical, financial and legal capability to operate the Malampaya project or to be a service contractor," Gatchalian emphasized, adding that it is incumbent upon the DOE to ensure that the transfer of interests of the members of the consortium should go through a comprehensive review and evaluation pursuant to the requirement under Presidential Decree (PD) No. 87.

The Malampaya Project has become the country's most significant oil and gas upstream development supplying 19.16% of the country's supply of electricity for 2020, and providing a crucial source of income for the government with a total net national government share amounting to P261,681,610,752.59 since it began commercial operations in 2002 until 2019.

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Gatchalian inudyok ang DOE na isiwalat ang plano sa Malampaya

Nais ni Senador Win Gatchalian na isiwalat ng Department of Energy (DOE) ang mga plano at programa nito hinggil sa Malampaya sa gitna ng pagbebenta ng interes ng operator nito na Shell Philippines Exploration, B. V. (SPEX) sa naturang gas field, pati na sa napipintong pagkapaso ng Petroleum Service Contract (SC) No. 38 o ang Malampaya deep water gas-to-power project upang masiguro ang tuloy-tuloy na suplay ng enerhiya sa bansa.

"Sa laki ng papel ng Malampaya na nagsusuplay ng 19.16% ng pangangailangan ng bansa sa kuryente kung pagbabasehan ang datos noong nakaraang taon, mahalagang malaman ng bawat Pilipino kung ano ang naghihintay sa bansa oras na masaid na ang Malampaya," sabi ni Gatchalian kasunod ng inihain niyang Senate Resolution No. 724.

Iimbestigahan ng senador ang DOE sa kanyang komite sa senado na Committee on Energy upang malaman ang estado ng pagbebenta ng interes sa Malampaya ng SPEX pati na rin ang magiging basehan ng DOE sakaling aprubahan nito ang planong bentahan. Tatlong taon mula ngayon aniya ay mauubusan na ng suplay ang Malampaya kaya mahalagang malaman kung anong direksyon ang tinatahak ng naturang kagawaran kapag dumating na ang panahong iyon.

Inanunsyo ng SPEX noong Setyembre 2020 ang planong pagbenta ng 45% na interes nito sa Malampaya project. Ang kumakatawan sa isa pang 45% sa Malampaya ay ang UC Malampaya Philippines na dating nasa pag-aari ng Chevron Malampaya LLC, samantalang ang natitirang 10% ay nasa pag-aari ng Philippine National Oil Company-Exploration Corp. (PNOC-EC) na hawak ng gobyerno.

"Napaka kritikal para sa DOE na siguruhing sinuman ang papalit sa Shell bilang operator ay may kaparehong sapat na karanasan o kapasidad at may kakayahang matugunan ang teknikal, pinansyal at ligal na aspeto sa pagpapatakbo ng Malampaya," giit ni Gatchalian.

Paliwanag pa ng senador na dapat ding isaalang-alang ng DOE na masusunod ang mga probisyon sa paglilipat ng interes ng mga miyembro ng consortium tulad ng pagsasailalim sa matinding pagsusuri na nakasaad sa ilalim ng Presidential Decree (PD) No. 87.

Ang Malampaya Project ay nakapagdala ng kabuuang kita sa gobyerno na umaabot sa P261,681,610,752.59 mula noong una itong magbukas ng operasyon noong 2002 hanggang noong 2019.

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