Dec 032013

MANILA, Philippines – The government may end up operating the Malampaya deep water gas-to-power project if it decides not to extend the service contract of the consortium led by Shell Philippines Exploration B.V. (SPEx), Energy Secretary Carlos Jericho Petilla said.

Petilla said if the consortium’s offer is not that good, the government may opt to just run the project after SPEx’s contract expires in 2024.

At the same time, he also said that the government may agree to extend the contract by 15 to 25 years if SPEx submits a proposal that is advantageous to the government.

“I am after what we will get in return. I am asking Shell, what is your offer? If it is the same, the government can just run it,” Petilla told reporters.

The consortium is asking for an extension given the possibility of more oil and gas in the 83,000-hectare project in Northwest Palawan.

Petilla said the consortium has not made any offer yet, which is why the Department of Energy has not made any decision on the group’s plan to extend its Malampaya contract for 15 years.

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The government earlier targeted to decide on the matter this year.

 “They have not given anything at this point,” Petilla said.

While he declined to provide details on what a “good offer” would be, Petilla said it should be “significantly better” than the terms of the existing contract.

The Shell-led consortium wants a 15-year extension of Service Contract 38 to 2039 as it wants to do more exploration and is also planning more investments for the project.

The consortium is already working on Phase 2 and 3 of the project, for which it offered an additional investment of $1 billion.

According to Shell, the second phase expansion will involve the installation of two new subsea gas wells by 2014 while the third phase is composed of new compressors and a platform that will be completed in 2015.

The Malampaya project supplies natural gas to three power plants in Luzon with a combined capacity of 2,700 megawatts or roughly 36 percent of Luzon’s power generation requirements.

The consortium is composed of SPEx, Chevron Malampaya LLC, with a 45-percent stake each and state-run Philippine National Oil Co.-Exploration Corp. with the remaining 10 percent.

Aug 292013
Anglo Holdings to focus on oil exploration

MANILA, Philippines – The Ramos family’s flagship investment firm Anglo Philippine Holdings Corp. will focus on upstream oil exploration following its divestment in an upscale property firm. Fresh funds from the P778-million sale of its shares in Shang Properties Inc. will finance higher investments in Philodrill Corp., the holding firm said in a regulatory filing. “The company’s overall thrust is to gain meaningful participation in all its investments in natural resources, property development and infrastructure,” Anglo Holdings said. “The company’s sale of its Shang Properties shares is in line with this thrust because the company intends to use the proceeds from the sale to acquire additional shares in Philodrill,” it added. Anglo Holdings currently owns 1.71 percent of Philodrill, which is expected to increase to roughly 10 percent with the additional investment. “From a minority interest in both Shang Properties and Philodrill, the company decided to consolidate its investment into a meaningful participation in Philodrill,” Anglo Holdings said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Anglo Holdings said it noted Philodrill’s higher dividend rate and better market liquidity. “A bigger participation in Philodrill equates to a bigger share in dividends which…will be better than having separate minority interests in two companies,” it added. The improved liquidity will also allow the holding firm to be flexible in realizing gains or minimizing losses. Early this week, Anglo Holdings sold its 214.145 million shares or 4.5-percent stake in the local property unit of Malaysia’s Kuok Group for P778.46 million. Upscale developer Read More …