DOE urged to explain approval of Udenna’s acquisition of Chevron’s Malampaya stake

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Senator Sherwin Gatchalian on Friday, April 16, urged the Department of Energy (DOE) to justify its decision to approve Udenna Corporation’s acquisition of Chevron’s 45-percent stake in Malampaya, saying it has the responsibility to explain to power consumers the consequences of the merger.

Gatchalian is referring to the transfer of Chevron Philippines’ ownership in Malampaya LCC to UC Malampaya Philippines starting last year. Udenna earlier announced it has absorbed the technical team and core experts of Chevron Corp. t ensure the continuous operation of the gas-producing field.

Gatchalian also said Presidential Decree 87 also requires the approval of the DOE on such transfer of shares in upstream petroleum ventures. “UC Malampaya Philippines completed on March 11, 2020 its acquisition of Chevron Malampaya LLC, the holder of a 45-percent interest in Malampaya gas field project, and it was only in October 28 last year that the DOE has been officially provided with the documents on the Malampaya share’s divestment,” Gatchalian said in a statement.

The senator stressed the need for an explanation from the DOE’s end on how they could justify their approval of the transaction.

 

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