The deal between Shell Philippines Exploration B.V. (SPEX) and the Udenna Corp. on the Malampaya gas field could see results in November, an official from the Department of Energy (DoE) said.
Energy Assistant Secretary Gerardo Erguiza Jr. said the Department’s approval for the transaction might be delayed slightly amid Senate hearings, hence, the time constraint in evaluating such.
“We want to complete this matter as soon as possible. If it’s just up to us, we have already finished it by this time or perhaps by November at the latest,” Erguiza said during an online press conference on Friday.
“We are looking at where these observations are coming from. We have to consider everything because there might be some things that we are missing and this process is ongoing right now,” he added.
According to him, their concerns for the transaction include the capacity of the entities to operate and their ability to deliver the project.
“Operators should ensure that they can operate. See to it that they are knowledgeable, skilled (and) competent and we see that they can move with the project,” he said.
Still, the Energy executive said there are two important preconditions for the accomplishment of the Udenna-Shell deal, the DoE’s approval as well as the Philippine National Oil Company’s (PNOC) consent.
“As far as I remember, there are two important preconditions, the DoE approval and PNOC consent. We don’t know yet (on the PNOC) but we are working on that part, on the responsibility of the (DoE),” Erguiza explained.
Shell earlier signed an agreement with the Udenna subsidiary, Malampaya Energy XP Pte Ltd, for the former’s sale of its 100 percent shareholding to the latter for the exploration of the Malampaya gas field.