Udenna Corp. on Tuesday welcomed the approval of the transfer of rights and obligations of Chevron Malampaya LLC (now UC38 LLC) by the Department of Energy to UC Malampaya Pte. Ltd. under service contract No. 38.
Udenna acquired Chevron’s 45-percent stake in SC 38 for about $565 million in March last year.
“We reiterate our company’s commitment to support the country’s energy agenda on security, self-reliance, and use of cleaner energy sources, and the DOE’s approval of the transfer of rights is a welcome progress to reach this end,” said Udenna chairman and chief executive officer Dennis Uy in a statement.
The DOE in November announced it was evaluating the transfer of the 45-percent stake of Chevron in the $4.5-billion Malampaya gas project in northwest Palawan to Udenna to determine the compliance to the technical, legal, and financial requirements.
“We are committed to the safe, reliable, and sustainable development of the gas-to-power industry in the Philippines through Malampaya. UC38 continues to be led by the highly qualified team who were previously with Chevron and provide us with upstream technical, operational, and commercial expertise based on global industry best practices,” Uy said.
He said the Malampaya consortium safeguarded the nation’s energy security by producing gas, which generates a fifth of the Philippines’ rapidly growing electricity needs.
As a consortium partner, UC38 has worked closely with Shell Philippines Exploration B. V. (SPEX), which also owns a 45-percent stake and is the current operator, and state-owned PNOC – Exploration Corp. (PNOC-EC) which holds a 10-percent interest.
“We are proud to be part of the successful Malampaya public-private partnership, providing indigenous, affordable and clean energy to secure the energy future of the Philippines. We will continue to explore the best avenue to provide a continuous and sustainable supply to meet the growing demand for cleaner power generation,” Uy said.
Energy Assistant Secretary Leonido Pulido III said during a Senate Committee Energy hearing last year the DOE believes the transfer of Chevron’s interest in SC 38 to Udenna required the agency’s approval.
Pulido said the transaction fell under Department Circular 2007-04-003 “prescribing the guidelines and procedures for the transfer of rights and obligations in the petroleum service contracts under Presidential Decree 87.”
He said the circular provides the guidelines upon which the DOE will evaluate the technical, legal and financial capacity of the companies involved.