Malampaya productive life can be extended 'for years to come': Udenna


Posted at Dec 06 2021 03:12 PM

Malampaya gas project. Shell Philippines Exploration BV, Handout
Malampaya gas project. Shell Philippines Exploration BV, Handout

MANILA - Udenna Corp believes it can extend the years of productivity of the Malampaya gas field project beyond the original estimate that its reserves will be depleted by 2027, a company official said Monday. 

Udenna purchased the majority of shares in the Malampaya gas field to further develop it, Udenna Corp president Marty Escalona told ANC.

"The intention is to be able to develop this well further, to maximize the reserves that are there. And continue the drilling process that will enable Malampaya to survive in the years to come. We can prolong this project even further," Escalona said.

"There’s still a lot of years to come that the well can still be productive," he added.

Malampaya supplies fuel to 3 power plants in Batangas, which together generate up to 30 percent of Luzon's energy needs.

Udenna Corp's acquisition of the majority of Malampaya shares from gas giants Chevron and Shell meanwhile is being questioned by various groups. 

Some allege that it lacked proper bidding, and that it was a crony deal.

Uy is a major supporter of President Rodrigo Duterte's 2016 campaign.

Escalona however reiterated that the government did not favor Udenna and that bidding took place.

In fact, there were about 30 bidders in the Shell deal but Udenna emerged as the one with the "most compelling" offer, Escalona said.

"These deals were awarded for having the most compelling tender demonstrating robust financial, technical and legal capabilities and crucially the commitment to retain Chevron and Shell staff. The bidding process alone took several months. It’s not true, the bidding was there," said.

Keeping former Chevron and Shell staff also gave the firm the expertise it needed, he said. 

Escalona concluded by saying that the accusations were affecting their ability to close financial transactions. It also has an impact on the company's network of employees and their families, he said.

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