January 18, 2022

Bicol Express News

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Dennis Uy’s Malampaya deal: US $1M – $2M daily income “no sweat” effort

Dennis Uy, a businessman from Davao City. Photo by Kim Ignacio

In an online webinar held the other night regarding the Malampaya issue, former PNOC president Ed Mañalac’s briefing based on facts bared intriguing disclosures that are now going the rounds in social media.

According to the disclosures, Dennis Uy (allegedly) is raking US $1M a day since March 2020 without investing a single centavo.

US $1M – $2M DAILY INCOME, “NO SWEAT” EFFORT

This estimate is conservative. The US$ 1M is based on 45% ownership which represents Chevron’s portion.

Dennis Uy is also buying Shell’s 45% portion which will make Dennis Uy own 90% of Malampaya, (allegedly) entitling him US$2M per day.

Uy’s alleged loan of US$565M has already been paid, and cleanly raking US$1M per day. If Uy finalizes his buy-out of Shell until 2024, that will be 2 million dollars a day.

Based from Ed Mañalac’s presentation, social media opinions are going the rounds, wondering how Department of Energy Secretary Cusi allowed this to happen, speculating the there is a conspiracy somewhere, starting as early as 2nd quarter of 2019.

Photo: Shell Philippines

MALAMPAYA, NATURAL GAS PROVIDER TO COUNTRY’S ENERGY NEEDS

As backgrounder, the Malampaya is the sole natural gas field in the country, supplying 40% of Luzon’s energy requirements.

A joint undertaking of the Philippine government and the private sector with Chevron owning shares of 45%, while Shell with shares of 45%, and 10% to the government.

Recently, the shares of Chevron and Shell were sold to Udenna Corp. owned by Dennis Uy, a campaign backer of Duterte since 2016. This means that Uy now owns 90% of the Malampaya.

The ongoing issue is that this transaction was questionable and allegedly breached the law.

The agreement in the Malampaya Project said that if Chevron and Shell would like to sell their interests, they will first have to offer it to the Philippine government, such condition did not happen.

DEPARTMENT OF ENERGY APPROVES BUY-OUT DEAL

Attorney Rodis, one of those who filed a complaint against Energy Secretary Cusi and Dennis Uy, said the Department.of Energy failed to do its job by approving the sale of shares to a company that did not even meet the technical and financial qualifications for handling a natural gas field.

Take note that Udenna allegedly entered this contract without any assets, and a 100 billion peso debt loans.

It also has zero track record on handling operations of a gas power plant.

In fact, “Udenna didn’t pay a single centavo in the acquisition of the Malampaya oil gas field”, according to Attorney Rodis.

PUBLIC CONCERNS RAISED

According to reports going the rounds, what is alarming is that “Since everything is on loan, Udenna has nothing to lose. They are not liable to any mistake because they don’t have investments on this agreement. They also now have control over the largest enterprise in the country.”

Another public concern is that “The Philippines lost 138-billion pesos in this Malampaya contract and Dennis Uy is allegedly the one who benefited most because of his closeness to President Duterte.”

Another concern is ” Malampaya is now handled by a company with incompetent people. Any mistake can lead to a gas leakage that will cause serious damage to the environment and communities.”