Gatchalian: Razon-Uy Malampaya deal should comply with the law to ensure PH energy security

Senator Win Gatchalian stressed that the recent agreement between Enrique Razon, Jr.'s Prime Exploration Pte. Ltd., a subsidiary of Prime Infrastructure Capital Inc. (Prime Infra), and Dennis Uy on the acquisition of his MEXP Holdings Pte. Ltd. (MEXP Holdings) should be in compliance with the law to ensure the protection of consumers, the government, and the country's energy security.

In 2021, Uy's Malampaya Energy XP Pte. Ltd. (Malampaya Energy), a wholly owned subsidiary of MEXP Holdings, was set to acquire the controlling interest in Shell Petroleum N.V., the parent of Shell Exploration B.V. (SPEX), which is the operator of the Malampaya deep water gas-to-power project. However, the Philippine National Oil Company Exploration Corporation (PNOC EC) did not give its consent to the transaction.

"Since PNOC EC did not give its approval, Malampaya Energy does not hold the controlling interest of SPEX. So, Prime Infra cannot say that it acquired a major stake in Malampaya until Malampaya Energy gets government approval. Nevertheless, we don't know the terms of the deal. So, we have to make sure that the transaction is compliant with law and regulation as Malampaya is the country's single most important energy resource," said Gatchalian who is set to file a Senate Resolution in light of the recent news.

Gatchalian reminded all parties concerned that the agreement requires prior approval from the Department of Energy (DOE) under Presidential Decree (PD) No. 87 and Department Circular (DC) 2007-04-0003. PD 87, otherwise known as the Oil Exploration and Development Act of 1972, regulates energy exploration and development activities. Service Contract (SC) 38, or simply the Malampaya project, was executed in 1990 under this law.

Specifically, Gatchalian said the circular prescribes the guidelines and procedures to ensure that the assignee or transferee possesses the legal qualification, financial resources, and technical expertise and experience to undertake its obligations and commitment under the petroleum service contract.

"The recent news has proven that we were right all along that Uy does not have the financial capability to run Malampaya, which fuels 30% of Luzon's electricity requirements or about 20% of the entire country's power," Gatchalian said.

Razon's Prime Infra recently signed a share purchase agreement to acquire MEXP Holdings, a unit of Uy's Udenna Corp.

"Kailangang maging maingat tayo at manatiling nakabantay sa ganitong mga transaksyon dahil nakasalalay dito ang seguridad ng enerhiya ng buong bansa," Gatchalian said.

Gatchalian: Kasunduang Razon-Uy sa Malampaya dapat pumabor sa mga konsyumer

Dapat kilatisin nang maigi ang kasunduan nina Enrique Razon at Dennis Uy hinggil sa pagbebenta nito ng kanyang shares sa Malampaya gas field project. Ito ang mariing sinabi ni Senador Win Gatchalian dahil kailangan aniyang pumabor ito sa mga konsyumer at sa gobyerno, at masiguro ang sapat na suplay ng enerhiya sa bansa.

Kamakailan lang ay lumagda ng kasunduan na bilhin ni Razon ang shares of stock ni Uy sa Malampaya.

"Hindi pa natin alam ang detalye ng kasunduan. Kaya naman higit na kailangan nating pangalagaan ang kapakanan ng ating mga kababayan lalo na't ang Malampaya ang kaisa-isang gas field sa bansa," sabi ni Gatchalian na nakatakdang maghain ng resolusyon sa Senado kasunod ng naging kasunduan.

Ipinaalala ni Gatchalian sa kampo nina Razon at Uy na lahat ng kasunduan ay kailangang dumaan muna sa Department of Energy (DOE) sa ilalim ng Presidential Decree (PD) No. 87 at Department Circular (DC) 2007-04-0003 bago maisapinal ang mga ito. Layon ng PD 87, o ang Oil Exploration and Development Act of 1972, na maglatag ng mga regulasyon para sa exploration activities upang makadiskubre ng mga bagong mapagkukunan ng produktong petrolyo. Ang Service Contract (SC) 38 naman o ang mismong Malampaya project ay ipinatupad sa ilalim ng naturang batas.

Ayon kay Gatchalian ang nabanggit na department circular ay nagsasaad ng mga panuntunan at pamamaraan upang masiguro na ang assignee o transferee ay may sapat na legal qualification, financial resources, technical expertise at sapat na karanasan upang maisakatuparan ang mga obligasyon sa ilalim ng petroleum service contract.

"Muling pinatotohanan ng kasunduang Razon at Uy ang matagal nang pinangangambahang walang pinansyal na kapasidad si Uy na magpatakbo ng Malampaya," ani Gatchalian.

"Noong nakaraang taon, nakatakda sanang bilhin ng kumpanya ni Uy na Malampaya Energy XP Pte. Ltd. (Malampaya Holdings) na subsidiary ng MEXP Holdings Pte. Ltd. (MEXP Holdings) ang 45% stake ng Shell Exploration B.V. (SPEX) sa Malampaya. Pero hindi ito natuloy dahil hindi ito pinayagan ng Philippine National Oil Company (PNOC EC). Ang PNOC EC ay may 10% stake sa Malampaya.

"Kailangang maging maingat tayo at manatiling nakabantay sa ganitong mga uri ng transaksyon dahil nakasalalay dito ang seguridad ng enerhiya ng buong bansa. Ang Malampaya ay nagsusuplay ng trenta porsyentong pangangailangan ng kuryente sa Luzon o bente porsyento sa buong Pilipinas," sabi ni Gatchalian.