Malampaya Energy XP Pte. on Monday defended its acquisition of shares in Shell Philippines Exploration BV (SPEX), saying the Senate Energy Committee had failed to see the big picture.
The subsidiary of Udenna Corp. (UC) said the Senate panel focused on a “very thin slice of information” when it questioned its funding capacity. Malampaya Energy XP clarified that its market capitalization is “only one element of a capital structure and does not in itself reflect the company’s ability to finance transactions.”
“The SPEX acquisition is 100% underwritten and funded by bank loans from our existing lenders. These full installation agreements have been provided to the relevant decision makers, ”the company said in a statement.
Last week, Senator Sherwin Gatchalian questioned the financial capacity of the company headed by Dennis A. Uy, saying figures from the Singapore Business Accounting and Regulatory Authority showed Malampaya Energy XP not had only a paid-up capital of $ 100. That, he said, means the company can’t operate a platform with that amount.
“The acquisition is supported by internationally renowned financial institutions who have seen Malampaya Energy’s ability to meet its obligations and generate value,” said Malampaya Energy XP.
He added that at the end of the sale of shares, the company will have “more than 10 billion pesos in cash”.
“The Energy Committee has unfortunately looked at a very thin slice of information and it is Malampaya Energy’s responsibility to work with the DOE [Department of Energy] and PNOC-EC to ensure that all the facts are presented correctly and that the certainty of funding and significant liquidity are known, ”the statement said.
He added that “no drilling has been carried out to stop the depletion of the Malampaya field”.
“It’s been seven years since the last drilling activity. Malampaya Energy is making every effort to rejuvenate Malampaya through a drilling campaign once the transaction is completed. “
The Philippines, the company said, will run out of natural gas by next year, and the postponement of its entry “will exacerbate the deterioration of the electricity situation,” he said.