Surigao del Sur Rep. Johnny Pimentel has called for the Department of Energy (DOE) to assure the “seamless transfer” of Malampaya’s day-to-day gas business amid calls for a probe of Shell Petroleum B.V.’s $460 million operator switch to Udenna Corp.
“We are counting on a smooth handover with zero disruption to Malampaya’s vital gas operations that supply up to 20 percent of the country’s electricity demand and provide the government a 60 percent share in net revenues,” said Pimentel, the House Committee on Good Government and Public Accountability vice chairperson, in a statement on Sunday, Nov. 21.
Pimentel made the remark after a second reelectionist senator sought an inquiry into Udenna subsidiary Malampaya Energy XP Pte Ltd’s acquisition of Shell’s operating stake in the offshore gas field.
“We’re not surprised at all by the political noise coming from senatorial candidates who might want to stir things up to put themselves in the limelight,” Pimentel said in response to the call for a Senate probe.
“If we look at the race for the 12 Senate seats, the fight is really for the last six seats. The candidates who are ranked No. 7 to No. 15 in the surveys are the ones under pressure to target everything under the sun for them to stand out.”
“As we can all see, those in the top six in the senatorial surveys are fairly quiet, because they are already assured of winning. They are not going overboard to advertise themselves,” Pimentel added.
Udenna, starting Jan. 1, 2022, will become Malampaya operator after Shell’s decision to sell for $460 million its 100 percent stake in Shell Philippines Exploration B.V. (SPEX).
SPEX has a 45 percent operating interest in Malampaya under Service Contract 38.
Pimentel also welcomed the new operator’s decision to employ all of SPEX’s officers and staff which ensures the operational reliability and safety of Malampaya’s gas business.
“Moving forward, we in the House are now more interested in the country’s longer-term energy security, particularly the development of the larger Sampaguita gas discovery located 250 kilometers southwest of Malampaya,” Pimentel said.
Pimentel, citing DOE records, said Sampaguita’s operator is required to drill two offshore appraisal wells on or before Oct. 16, 2022, a deadline less than 11 months away.
“We want the operator to drill the commitment wells on schedule. We are hoping that Sampaguita can transition from exploration to production within this decade – just in time to replace Malampaya’s thinning reserves that are projected to last only until 2027 to 2029,” Pimentel added.
Meanwhile, PXP Energy Corp., through Forum Energy Ltd., has a 70 percent operating interest in Service Contract 72 including the Sampaguita gas finding.
According to an independent assessment made by Weatherford Petroleum Consultants, Sampaguita is projected to contain 2.6 trillion cubic feet of in-place gas and 5.5 trillion cubic feet of in-place prospective gas.
Another study showed that Sampaguita’s potential resources could reach 3.4 trillion cubic feet of gas and 440 million barrels of oil.