Enrique Razon says all-Filipino Malampaya consortium should be 'source of pride'

MANILA — Prime Infrastructure Chairman Enrique Razon said on Thursday the Malampaya Project aims to achieve national energy security and independence, despite criticism from a former official.

President Ferdinand Marcos Jr. recently extended the Malampaya Service Contract No. 38 (SC 38) gas field contract until 2039. It was supposed to expire in 2024.

Malampaya is currently being run by all-Filipino consortium members Prime Infra of Razon with 45 percent stake, Udenna Corp by Davao-based businessman Dennis Uy with another 45 percent, and the state-owned PNOC Exploration Corp. with the remaining 10 percent.

Former PNOC President Ed Mañalac earlier appealed to Marcos to take over Malampaya after the contract expires.

“Ano ho yung basehan ninyo nung pinirmahan niyo yung extension? Kasi nga sinasabi natin yung mga service contractor na yan dapat may alam at may pera... because some gave advantages to some entity, causes losses for the government of the Filipino people,” Mañalac said on Monday.

In a statement, Razon claimed that Mañalac was using the renewal of the SC 38 "to push his own agenda."

"Para sa Bayan. This is the daily mantra of the people behind the Malampaya project. Maybe you can learn a thing or two from our pool of world-class talent running the project who you so callously imply to be incompetent and inexperienced. These are the same people working tirelessly to achieve our vision of energy security and independence," Razon said.

He said Mañalac, who argues that there are potential losses for the government, brokered a tripartite deal for Joint Marine Seismic Undertaking (JMSU) among the Philippines, Vietnam, and China "essentially compromising Philippine territory."

• Supreme Court voids 2005 joint exploration deal with China, Vietnam
• DFA frets over SC ruling voiding 2005 joint exploration deal

"The Supreme Court striking down the JMSU as unconstitutional has evoked a range of reactions within legal circles, with some accusing Mr. Mañalac of committing treason," he said.

"If this is Mr. Mañalac’s attitude towards Philippine sovereignty, is he so deeply offended by the fact that the Malampaya gas field is now under the operation of an entirely Filipino consortium, a development that should be a source of pride for all of us?," he added.

In response to Razon, Mañalac maintained that the port and casino magnate has no expertise in oil exploration.

"Mr. Razon can you provide at least one, just one, instance of your company's involvement in finding and developing oil and gas, here in the Philippines, or anywhere in the world? Prime Infra claims to have non-existent technical expertise," Mañalac said.

Energy Secretary Raphael Lotilla earlier defended the contract, citing the technical expertise and financial capabilities of the current consortium members.

Mañalac challenged the Department of Energy (DOE) to "present documents" to prove Prime Infra's technical competency.

In February, the DOE said for the first time an "all-Filipino" consortium completed maintenance works on the Malampaya gas project.

• DOE defends extension of Malampaya extraction deal
• All-Filipino consortium completes Malampaya maintenance work: DOE
• Marcos extends Malampaya gas field contract until 2039

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