The Philippine National Oil Company-Exploration Corporation (PNOC-EC) effectively protected the country’s national interest when it blocked the sale of Shell Philippines Exploration B.V.’s (SPEX) stakes to Malampaya Energy XP Pte. Ltd., a subsidiary of Dennis Uy-led Udenna Corp., in the Malampaya Deep Water Gas-to-Power Project.

Senator Sherwin Gatchalian pointed this out when he lauded the PNOC-EC after it disclosed it is withholding its consent on the sale of Shell’s shares in the Malampaya gas project during the recent hearing of the Senate Energy Committee on the controversy.

“This clearly shows that the company put first the interest of the Filipinos and the generations to come,” said Gatchalian, who chairs the Senate energy panel, in a statement.

“This is an asset of future concern. I laud PNOC’s decision and that it will not be put to waste because we recognize that it was made in order to protect the interest of the country,” he added.

Several senators have expressed alarm over Udenna Corp.’s buyout of a majority stake in Malampaya which the Department of Energy (DOE) readily approved.

SPEX legal manager Kiril Caral had confirmed that the deal, which could have given Uy 90-percent ownership in the Malampaya gas field, will not push through for now.

“Without the consent of the PNOC-EC we will not be able to proceed with the completion at the moment,” Caral told Gatchalian when asked if the company will still pursue the sale.

Gatchalian recalled that in a hearing last July 14, PNOC president and CEO retired Lt. Gen. Rozzano Briguez told the panel that they waived the right to match the offer to acquire SPEX’s shares.

According to Briguez, the government is constrained by many laws to operate this type of business and it might affect the operational stability of Malampaya especially in prompt decision-making that’s required of a very complex offshore exploration company.

The PNOC chief also cited the reason for the availability of funds since government banks are only willing to lend them only up to 50% of the needed amount. Briguez was quoted saying that if no government bank would lend to the agency a specific amount, it would compromise other projects that the PNOC-EC have.

But when Gatchalian sought for the reason behind PNOC-EC’s decision to withhold its consent to the SPEX-Udenna deal during last week’s hearing, Briguez politely begged off from further providing details saying they have yet to fully discuss the matter with their other partners and stockholders.

Gatchalian said he would request for an executive session for a comprehensive briefing as to how PNOC-EC arrived at such a decision in the spirit of transparency.

“I would like to give credit where credit is due and that is to the PNOC,” the lawmaker said.

“Whatever their reasons in refusing to give their consent to the Udenna Group’s acquisition of Shell’s 45% stake in the Malampaya project, we can now be assured that the chances of having one of the country’s most important national asset being under the control of a seeming unqualified company has dwindled, if not, already nil in possibility,” he stressed.