AMID an impending energy crisis, a former government official asked the government to seriously consider taking full control over the Malampaya Gas Project if only to avert imminent power outages, while earning at least P100 million per day.
Citing Presidential Decree No. 87 (Oil Exploration Act of 1972) which seeks to ensure maximum benefits to the people, former Energy Undersecretary Eduardo Mañalac appealed to President Ferdinand Marcos Jr. to terminate Service Contract 38 (Malampaya Project) when it finally expires next year.
To date, Malampaya is operated by Enrique Razon-owned Prime Infrastructure Capital and Denniis Uy’s Udenna by virtue of the controversial transfer of shares by its former operators – Shell and Chevron. Speaking in a forum organized by the National Youth Movement for the West Philippine Sea (NYMWPS), Mañalac said that the Philippine National Oil Company (PNOC) which has been relegated to a measly 10% controlling stake, should be made to operate the Deepwater Gas-to-Power Project.
The PNOC was created in 1973 by Former President Ferdinand Marcos Sr. for the purpose of taking over operations after the contract ends – a process which Mañalac claimed will “deliberately place direct control of Malampaya operations in the hands of the government.”
He likewise said that the bold move “will also serve to maximize earnings for the Filipino people, who are at this point, losing billions of pesos to what they believe as unqualified private companies.”
Udenna and Prime Infra currently earn P50M each, or a combined P100M daily from Malampaya gas, the same amount the Philippines government may earn if it takes full control of the operations.
The NYMWPS, which earlier questioned the process by which Prime Infra and Udenna acquired the Malampaya controlling stakes, for its part said that both entities allegedly do not have the technical expertise and financial capability as stipulated under their service contracts.
Prime Infra and Udenna are holding an identical 45% controlling stake for a combined 90% share in the gas field project, leaving the PNOC with a 10% mandatory share. Malampaya supplies 20% of the power requirements of Luzon, the biggest of three major islands in the Philippines.
metrosundaily
