Energy Department stops Malampaya asset sale

The sale of government's 10 percent stake in the Malampaya-gas-to-power project was put on hold until the administration of President Benigno S. Aquino III could decide whether to sell the asset, a Cabinet official said Monday. Energy Secretary Jose Rene Almendras told reporters that the sale did not push through because the new board of PNOC Exploration Corp. was not able to decide on how to move forward with the sale. "So the guidance from me is, let's resolve the board issue and maybe even study how the Malampaya approach is going to be. Even ask the question: Do you really want to sell Malampaya if it's generating revenue today?," Almendras said Government may still pursue the privatization of PNOC Exploration's stake in Malampaya if the asset will fetch a good price, according to him. The Arroyo administration had hoped to privatize the Malampaya asset for P16 billion to help reduce the budget deficit. "The finance side of me is saying, I have no problem in selling it if you're going to pay me a premium over the net present value of all the future cash flow that would be gained by government. We're going to study it, and we're going to understand it," Almendras said. Almendras said he discussed the Malampaya asset with Finance Secretary Cesar Purisima during the Cabinet meeting last week. "It's not about putting it on hold, it's about looking for the best possible interest to the government. We're not saying it will not be sold, maybe it will be for the right value or the pay to the government would be substantial enough," the new energy chief said. —VS, GMANews.TV