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Dennis Uy claims $191-M capital on Malampaya buyout

By Joselle Dela Cruz


Amid the controversies on Malampaya buyout, Davao-based businessman Dennis Uy claimed that Udenna subsidiaries have $191 million capitalization when he acquired the 90-percent of the gas field in the two-tiered asset deal.


“The combined capitalization of the two companies – UC Malampaya Philippines and Malampaya Energy XP – that acquired the Chevron and Shell shares in SC 38 (Service Contract 38) – is $191 million,” Uy stated in a letter addressed to the Board of Trustees of the Makati Business Club (MBC) on Nov. 12.


The Senate panel findings earlier showed that the UC Malampaya, buyer of Chevron shares, had a negative working capital yet the deal was approved.


Uy said that Udenna has been affected by the pandemic and clarified that the financing of his holding company is independent of Malampaya.


“The documents of these two companies were certified at the Philippine consulate in Singapore and have been shared with the relevant Philippine authorities,” Uy added.


Uy also said the workforce who will operate the gas field “will be the very same personalities and experts from Chevron and Shell who will manage and operate Malampaya.”


Additional partners for the operations will no longer be needed, he added.


The businessman said he wanted to be treated with “fairness and justice.”


“I personally have chosen to remain silent amidst the allegations thrown at myself and Udenna, as I hoped that the truth about the Malampaya issue will eventually be known. [I] can no longer stay silent on this matter and allow others to further their agenda,” he said.


Last Nov. 10, eight business groups, led by the MBC, urged the Senate and other concerned government agencies to dig deeper into the Malampaya buyout controversy, stressing the importance of the gas field in the Philippines.


"The government should scrutinize the buyer's financial and technical capabilities and interests and should reserve, enforce, and exercise its right to block and invalidate transfers of shares and control that may be disadvantageous to the Filipino people," the groups said.


With Uy’s takeover of Chevron Malampaya and SPEX, Udenna holds 90 percent of the operating interest in Service Contract No. 38. or the Malampaya gas-to-power project leaving the Philippine National Oil Company holding the remaining 10%.


The joint statement was signed by the Makati Business Club, Financial Executives Institute of the Philippines, Energy Lawyers Association of the Philippines, Filipino CEO Circle, Integrity Initiative, Investment Houses Association of the Philippines, Philippine Women's Economic Network, and Women's Business Council Philippines.


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