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PCC to review Udenna-Chevron deal involving Malampaya shares


Udenna Corp.’s buyout of Chevron from the Malampaya gas field in offshore Palawan has been notified, but the Philippine Competition Commission (PCC) is still reviewing whether all the documents are complete before a review of the deal could begin.

The parties involved sent out a notification and the PCC is now checking if all the documents are in, PCC Chairman Arsenio Balisacan said Wednesday.

“Nasa sufficiency determination stage. So nag-submit na sila, pero tinitignan kung kumpleto ‘yung mga papers,” he told reporters in an interview in Pasig City.

Dennis Uy’s Udenna Corp. is buying all of Chevron Malampaya LLC’s shares in the gas-to-power business equivalent to a 45% stake in the offshore Palawan gas field.

Under the Philippine Competition Act, the PCC is mandated to review mergers and acquisitions with an aggregate value of P2.2 billion or higher to ensure that anti-competitive practices are eliminated.

According to the PCC, it has 15 days make an initial review of determining whether the filing is sufficient or deficient.

If found lacking, the parties are given the opportunity to complete the notification.

“Kung hindi pa kumpleto, they will ask the party to complete them. Only then, ‘pag nakumpleto na, will they start the Phase 1 (of the review),” Balisacan noted.

A Phase 1 review could take 30 days under the PCC timeline. If the PCC needs more time, it would then elevate the review to Phase 2 which could take another 60 days.

“The clock will not click until all the requirements are there. We can return it kung hindi kumpleto …” Balisacan said.

“Hindi namin ine-entertain ‘yung piecemeal submission of the requirements,” he added.

The Malampaya gas-to-power facility fuels three gas-fired power plants with a total generating capacity of 2,700 megawatts (MW), providing up to 30% of the power generation needs of Luzon.

Connected to onshore gas plants in Batangas, the Malampaya offshore facility was inaugurated in 2001.

Estimates showed its gas reserves are sufficient until 2022 to 2024. —VDS, GMA News

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