By Catherine Cueto 

Former Executive Secretary Ruben Torres filed a petition before the Supreme Court, which calls to annul the sale and transfer of shares in Malampaya Project in Palawan province made in 2019 and 2020 by Chevron Philippines, Ltd. in favor of UC Malampaya Philippines Pte Ltd., a wholly-owned subsidiary company of Udenna Corporation whose majority stockholder is Dennis Uy. 

The controversial transfer has been a subject of Senate investigations.

A statement from the camp of Torres claimed that the Malampaya Project signaled the beginning of the natural gas industry in the country and is one of the largest and most significant industrial endeavors in the Philippines. 

It further stated that since it began its commercial operations in 2002, it contributed over USD$12 billion in revenues to the Philippine Government.

The participating interests in the Malampaya Project are Shell Exploration B.V. with 45% shares, Chevron Malampaya LLC with 45% shares, and the Philippine National Oil Company (PNOC) with 10% shares. Chevron Malampaya LLC is a wholly-owned subsidiary of Chevron Philippines, Ltd.
 
In 2019, Chevron Philippines, Ltd. and UC Malampaya Philippines Pte Ltd. executed a Share Sale and Purchase Agreement and, in 2020, an Assignment of Membership Interests in Chevron Malampaya LLC. 

Under the terms of these Agreements, Chevron Philippines, Ltd. sold all its shareholdings and transferred all its rights and interests in Malampaya Project to UC Malampaya Philippines Pte Ltd. The transactions were approved by former Department of Energy (DOE) Secretary Alfonso Cusi (Former Sec. Cusi).

Since then, Chevron Malampaya LLC – now a subsidiary of Udenna Corporation – was renamed UC 38 LLC.

Current DOE Secretary Raphael P.M. Lotilla, former DOE Secretary Cusi, UC Malampaya Philippines Pte Ltd., Chevron Philippines, Ltd., and other senior DOE officials are impleaded as respondents in the petition.

The statement said that Sec. Lotilla is included as a respondent only because he is the current DOE Secretary, without attributing to him any fault or wrongdoing relative to the Malampaya transactions.

Torres, who served as Executive Secretary of former President Fidel V. Ramos, said he filed the petition as a citizen of the Philippines. 

He alleged in the petition that the transfer of rights in the Malampaya Project was “without the requisite legal, technical, and financial evaluation required by law and regulation.”

Torres is assisted in his petition by his counsel Rivera Santos and Maranan Law Offices.