Senator Sherwin Gatchalian on Monday urged the incoming new administration of the Department of Energy (DOE) to ensure that existing laws and regulations are followed before giving its consent to the impending entry of the Razon-led Prime Infrastructure Holdings Inc. (Prime Infra) in the Malampaya gas-to-power project.

Gatchalian made the call after it was reported that Philippine tycoon Enrique Razon will acquire a controlling stake in businessman Dennis Uy’s Malampaya gas project.

“The mere fact that the business unit of Dennis Uy’s Udenna Corp., which took over the 45 percent stake of Chevron Malampaya LLC, is now disposing of its hold in the gas field project negates the DOE’s earlier assertions that UC Malampaya Philippines Pte. Ltd. was financially and technically capable from the very beginning,” Gatchalian said in a statement.

The Senate Committee on Energy chief noted that this development concerning Malampaya’s operations also affirmed the previous claims that the DOE railroaded the approval of the transfer of a substantial participating interest in the gas project, making it clear that the DOE violated laws.

He said the next DOE chief should make sure to protect the interest of the nation above everything else.

“As our country’s single most important energy resource, it is imperative to say the least that the company – whichever is interested in Malampaya – is compliant with the financial, technical, and legal aspects as prescribed by existing laws and is willing to secure prior government approval,” the lawmaker said.

Gatchalian stressed that the law is clear - that Department Circular 2007-04-0003 mandates that the rights and obligations under a petroleum service contract executed under Presidential Decree 87 shall not be assigned or transferred without prior approval of the DOE.

Likewise, such transaction requires securing the consent of other members of the Malampaya consortium, and that includes the state-owned Philippine National Oil Company-Exploration Corp. (PNOC-EC) which holds the remaining 10 percent interest in Malampaya.

He noted that Shell Philippines Exploration B.V. (SPEX) holds the 45 percent controlling interest in Petroleum Service Contract 38 (SC 38) which is the Malampaya gas field.

Nevertheless, Gatchalian said he expects Prime Infra to go through the process since they have indicated they are willing to be scrutinized under existing regulatory approval processes to ensure that the deal would be above board.

“We expect transparency on the part of Prime Infra in dealing with government regulations to make the transfer of interest binding and effective,” he said.

“The future of our energy security is at stake in the years to come,” Gatchalian reminded.