Govt bent on selling 10-% stake in Malampaya

Despite criticism that state assets are being sold in a rush close to the end of President Gloria Macapagal-Arroyo’s term, government will pursue the sale of its 10-percent stake in the Malampaya oil and gas operations in Palawan. Finance Secretary Margarito Teves stressed on Thursday the sale of government’s 10-percent share in Malampaya, under the name of state-owned Philippine National Oil Co.-Exploration Corp. (PNOC-EC), was cleared by both the Department of Justice and the Office of the Government Corporate Counsel, and was approved by its board of directors since 2005. “This cannot be construed as a midnight sale, and such claims are inaccurate," Teves said. The sale would only involve government’s stake in the consortium that operates the gas project, but government would retain ownership of the natural gas resources. “Thus the government will continue to receive royalties from the utilization of these resources," Teves said. “We are pursuing the sale of PNOC-EC stake in Malampaya, because the expected proceeds from this privatization are already part of our budget program in the first half of the year," Teves said. “This will also help us in achieving out fiscal target for the first half of the year and leave the incoming government with a manageable fiscal position." Government expects its 10-percent stake in Malampaya to fetch some P17 billion, an amount that forms part of this year’s fiscal program with the sale of P30 billion worth of state assets. PNOC-EC’s partners in the Malampaya project, Chevron Philippines and Pilipinas Shell Petroleum Corp. would have the right to match the offer for the 10-percent stake. This feature would give the transaction transparency and attract competitive buyers, Teves said.—VS, GMANews.TV