THE energy segment of the Manuel Pangilinan (MVP) group of companies is not keen on investing in the Malampaya natural gas field offshore Palawan because its gas reserves are expected to be depleted by 2024.
Pangilinan, chairman of Philex Petroleum Corp., the energy division of the MVP group, said they have no plans to invest in Malampaya.
“Maybe [it is]not in our radar,” Pangilinan told reporters on the sidelines of an event in Makati city.
San Miguel Corp. (SMC) earlier expressed strong interest in owning and operating the Malampaya facility should the government decide to privatize it.
SMC president and chief operating officer Ramon Ang said they are waiting for the Malampaya facility to be auctioned off by the government.
Once the contract held by the consortium that operates Malampaya expires, Ang said the facility will belong to the government, thus they will take the opportunity to bid for it.
Under the rules of the build-operate-transfer scheme, the Malampaya operator will have to turn over the project to the government once the contract expires.
The gas field is currently operated by a joint venture between Shell Philippines Exploration B.V., Chevron Texaco Malampaya LLC, and the Philippine National Oil Co.-Exploration Corp. under a 25-year contract with the government.
But the Department of Energy (DOE) said Shell Philippines has a pending proposal for the extension of the contract.
The Malampaya gas field, located 850 meters deep offshore northwest Palawan, has proven reserves of about 2.5 trillion to 3.5 trillion cubic feet of natural gas.