(MV) — Several concerned Filipino citizens, including those living abroad, are opposed to a proposed deal that will transfer the ownership of the Malampaya gas field to a company whose owner is a known supporter of the new Philippine president, Ferdinand R. Marcos Jr.
In a letter to Philippine Department of Energy Secretary Raphael P.M. Lotilla, the concerned citizens said they are expressing “in the strongest possible terms, disapproval of and opposition to what now appears, in view of the attendant circumstances, the very onerous act of giving consent to the transfer of control of Shell on Malampaya to Razon’s Prime Infra.”
In May 2021, Shell sold its stake in Malampaya to Malampaya Energy XP, a subsidiary of Udenna which is owned by businessman Dennis A. Uy, an ally of then-President Rodrigo Duterte.
But the deal stalled because a minority shareholder of Malampaya, the government-owned Philippine National Oil Company-Exploration Corporation or PNOC-EC, withheld its consent.
In July 2022, Prime Exploration Pte. Ltd., a subsidiary of Prime Infrastructure Capital Inc. or Prime Infra, announced its acquisition from Udenna the 45% operating stake in the Malampaya gas field. Prime Infra is owned by business tycoon Enrique Razon Jr., a Marcos supporter.
According to the concerned citizens, “Mr. Razon’s Prima Infra may have the financial capability, but none among Mr. Razon’s companies including Prime Infra have the required experience in upstream petroleum exploration and production operations and technology. As such, the entry of such an inexperienced company will put PNOC’s interest and the energy security of the country at risk.”
The concerned citizens added, “We are in disbelief as to why PNOC-EC can give its consent to a non-qualified group to gain the benefits of a very low risk business venture instead of PNOC operating Malampaya for the benefit of the Filipino people. Alternatively, why not keep Shell as operator to ensure reliability of operations and supply of gas while the PNOC-EC trains its people in preparation for a take-over of Malampaya operations when [the current service contract’s] term ends in 2024?”
They also told the energy secretary that should “any circumstances arise in the near future when [the Department of Energy] and the duly appointed Board of PNOC-EC are subjected to any kind of pressure from any source or quarter to change your firm resolve to protect the interest of the current and future generations of Filipinos, please be assured of our staunch and unwavering support for the right decision of not giving consent to the Razon/Prime Infra-[Shell] deal in the faithful performance of your respective duties as Secretary of the Department of Energy and Ex-Officio Chairman of the PNOC-EC, as well as a Member of the Board and as a true patriotic citizen of the Philippines.”
Among the signatories of the letter is Guam-CNMI resident Dr. Celia Lamkin, founder and global chairperson of the National Youth Movement for the West Philippine Sea.
The Malampaya natural gas facility supplies fuel to three major power plants in the Philippines’ northern and main island of Luzon, providing 40% of its energy requirement.
