THIS is regarding the 24 March 2023 Manila Standard opinion piece by Mr. Ernesto M. Hilario titled “Are we moving closer to energy security?” (https://manilastandard.net/opinion/314316361/are-we-moving-closer-to-energy-security.html).
Nicely written in its optimism on Philippine Department of Energy Secretary Raphael Lotilla’s actions and excellently misleading. The article would have benefitted from some basic research on relevant laws and historical facts.
Mr. Lotilla’s actions are in direct contrast to the type of energy security envisioned by the late President Ferdinand Marcos Sr. as expressed in his Presidential Decree 87 which created the Philippine National Oil Co. or PNOC in response to the oil crisis in the 1970s. What Mr. Lotilla has done is to simply follow through the betrayal of the interests of the people started by his predecessor, Mr. Alfonso Cusi.
These two, who should be notoriously remembered in this nation’s history, gave away the nation’s gas assets’ ready profits of some 100 million pesos or $1.8 million per day to Mr. Enrique Razon and Mr. Dennis Uy. These two tycoons, referred to by Mr. Hilario in his article as “competent private partners,” have never seen an oil drilling rig nor a drop of oil nor a whiff of gas come out of the ground nor did their previous or immediate past business histories indicate any competence in the energy industry.
The mandate of the Department of Energy is to ensure energy sufficiency and security. Malampaya is the biggest indigenous source of gas for the country. So how did Mr. Lotilla and Mr. Cusi manage to lose or kick out Shell and Chevron, two of the largest and most competent international oil companies, and put in their stead Mr. Razon’s Prime and Mr. Uy’s Udenna? The two latter companies, again, referred to by Mr. Hilario as “competent” private partners, have no prior experience in oil and gas exploration and production. Or if Chevron and Shell did kick themselves out of Malampaya, why shouldn’t PNOC take over? No amount of publicity and passionate but lame justifications in the media from Mr. Lotilla could hide the fact that Malampaya is the very first foray of Mr. Razon’s Prime in the oil and gas exploration and production business whose graveyard is littered with the bones of incompetent first-timers. But in this sweetheart arrangement, Mr. Razon gets to feed on the carcass of the people getting screwed another time. What a perverse sense of energy security!
With Mr. Lotilla, and Mr. Cusi before him, disregarding the law and squeezing out legitimate and competent companies like Shell and Chevron, no other legitimate and capable oil companies will ever dare consider investing in oil exploration and production in the Philippines. This will severely hamper our ability to ensure our own energy security. And it is doubtful if Mr. Lotilla, who has zero experience in the oil business, even realizes this. We have zero confidence in Mr. Lotilla’s ability to shepherd the country toward what Mr. Hilario says in his article’s title “moving closer to energy security.” More like farther and farther away!
DR. CELIA LAMKIN
Global Chair and Founder
National Youth Movement for the West Philippine Sea
