Energy Secretary Alfonso Cusi asked newly-appointed PNOC Exploration Corp. president Rozzano Briguez to review all oil and gas projects of the company “objectively.”
“So as not to put bias into his mind, we asked him to look into it and be objective. Look at all the programs, and then come back to us and make his position,” Cusi said.
PNOC EC announced Briguez, the former commanding general of the Philippine Air Force (PAF), assumed office on Friday.
Cusi said Briguez should also review PNOC EC’s plan to increase its stake in the $4.5-billion Malampaya gas project and the planned oil importation and implementation of a strategic oil stockpile.
Briguez formally took his oath of office before Cusi on Feb. 17. Cusi said “he [Briguez] was given briefing by management and one of those is acquisition of Chevron share.”
PNOC EC, a subsidiary of state-run Philippine National Oil Co., was planning to acquire an additional stake in the Malampaya gas project after it exercised its right of first refusal on the sale of Chevron Malampaya LLC’s 45 percent stake to Udenna Corp. last year.
Udenna, controlled by businessman Dennis Uy, signed a sale and purchase agreement to acquire the entire shareholdings of Chevron Malampaya LLC, a wholly-owned subsidiary of Chevron Philippines Ltd. in October.
Chevron Malampaya owned a 45-percent stake in service contract 38 or the Malampaya gas project while Shell Exploration Philippines B.V. holds the other 45 percent stake and is operator of the project.
PNOC EC owns the remaining 10 percent stake and as member of the SC 38 consortium, it has the right to match the offer of Udenna for Chevron’s stake.
Briguez replaced former PNOC EC president and chief executive Pedro Aquino Jr. who was asked by President Rodrigo Duterte to resign effective Oct.14, 2019 for allegedly approving a memorandum of agreement with a Russian firm for the development of a multilateral cooperation in oil products and trading, and joint participation in oil refining without the permission of the board led by Cusi.
Cusi earlier tasked PNOC EC to study oil importation and stockpiling to ensure security of supply.
Meanwhile, PNOC EC approved an operating budget of P10.593 billion for 2020 to finance its exploration and production projects and other capital expenditures.