THE National Youth Movement for the West Philippine Sea, whose global chair is Dr. Celia Lamkin, issued the following statement:
“We have been following the saga of the ‘Malampaya Scam’ that started around 10 years ago when Shell, the operator of the Malampaya Gas Field, asked for an extension of Service Contract 38 which was refused by the Department of Energy or DOE. Just before the pandemic, we became aware that a deal was being negotiated by Dennis Uy’s Udenna Corporation to purchase Chevron’s 45% participating interest in Malampaya. To our surprise, the deal was approved by the DOE under Secretary Alfonso Cusi. It was no secret that Udenna was technically, financially, and legally unqualified to meet the requirements of the law for Service Contractors. A case was subsequently filed with the Ombudsman by concerned citizens against Cusi, Uy, Udenna’s Board of Directors and the PNOC-EC President and Board of Directors, Chevron and Shell for breaking the law. The Philippine National Oil Company Exploration Corporation or PNOC-EC, a member of the Malampaya Consortium, was cited in the complaint for giving its consent to the deal. Former Secretary Cusi was Chairman of the PNOC-EC Board at the time.
“In December 2021, the National Youth Movement for the West Philippine Sea praised and thanked PNOC-EC for not consenting to the MEXP-Shell deal only to see it fold with its new set of Board of Directors!
“After the presidential election in 2022, business tycoon Enrique Razon’s Prime Infrastructure Company (also technically unqualified) made a similarly illegal deal to purchase Shell’s 45% interest in Malampaya and the PNOC-EC again gave its consent. The DOE appointed a panel of experts to review the validity of this deal, and they concurred with current DOE Secretary Raphael Lotilla who then approved the deal. Now, Mr. Razon is asking for an extension of Service Contract 38 which the DOE is poised to grant.
“Based on our knowledge of Service Contracts in other oil producing countries, the host country in fact waits for the expiration of service contracts with foreign companies so their national oil companies can then take over and reap the full benefits of ownership. The PNOC-EC has done the exact opposite. They have consented to give the assets away. Udenna and Prime Infra are now earning a combined total of 100 million pesos or $1.8 million a day. PNOC could very well have taken over if Chevron and Shell were wanting to leave, but they did not. PNOC’s Board of Directors is composed of the following: Mr. Rafael del Pilar, geologist and former President of the PNOC-EC; Ms. Zenaida Monsada, former DOE Secretary; Mr. Art Sali, another geologist; Mr. Romeo Solis, former Petroleum Engineer of Chevron; and another geologist Mr. Edgar Cutiongco. PNOC has been in existence for 49 years, and has explored, drilled and produced petroleum; and thus more than qualified to take over operations of Malampaya. Why did the PNOC-EC Board with its roster of experienced geologists choose to surrender Malampaya? Why give it up? Why be silent and consent? Udenna simply borrowed the money to buy Chevron’s share. The government could have done the same. In fact, PNOC in its Charter clearly is allowed to borrow from banks to finance its projects.
“The distinguished panel put together by Secretary Lotilla to review Mr. Razon’s bid to buy Shell’s 45% was composed of the following members: Mr. Alessandro Sales, a geologist and current DOE Undersecretary; Mr. Rufino Bomasang, former PNOC-EC President; Mr. Francisco Delfin, a geologist and former DOE Undersecretary; and Mr. Froilan Tampico, former President of the National Power Corporation. We disappointedly wonder how this panel of esteemed geologists who are Filipinos and have occupied responsible positions in our government could have agreed to give away our natural resources to the private sector. These are distinguished scientists who are well aware of the workings of the Service Contracts System, its aims and objectives and how they were intended to serve our people, not betray them. The Filipino people own Malampaya. Why give it up? Why be silent and consent? Their silence is also complicity to a betrayal of the people in a grand scale.
“A few days ago, Mr. Eduardo Mañalac, former DOE Undersecretary, former President of the PNOC, former president of the PNOC-EC, and former Chairman of the PNOC-EC, together with the National Movement for the West Philippine Sea, appealed to President Ferdinand Marcos Jr. to terminate Service Contract 38 when it expires in 2024. This is to pave the way for PNOC-EC can take over management of what properly belongs to the Filipino people and receive the revenue in their behalf which can be utilized to address our economic problems — some one hundred million pesos a day! Our energy advisers are predicting another intense summer of rotating brownouts — 100 million pesos a day would make a huge difference in helping Filipinos surmount all the energy crises that have kept them poor!
“The complicit silence of this supposedly prime developmental agency of government will multiply the poor and magnify the continuing suffering of the very people they have sworn to serve and protect. What an incomparable shame.”
