Gov’t sets midnight P17-B Malampaya stake sale 05/21/2010

Gov’t sets midnight P17-B Malampaya stake sale

05/21/2010 The government is pushing through with the sale of a profitable 10 percent stake in the Malampaya natural gas project despite the recommendation of the state firm, Philippine National Oil Co.-Exploration Corp. (PNOC-EC), which owns the stake, against it. The sale of the Malampaya stake is projected to earn the government at least P17 billion which Finance Secretary Margarito Teves said would be used to plug an estimated P293-billion budget shortfall by the end of the year. A PNOC-EC official, however, said questions would likely be raised on the sale of the asset during the final days of the Arroyo administration. Teves claimed the sale not only has prior clearance from the Department of Justice and from the Office of the Government Corporate Counsel but also the approval of the PNOC-EC board of directors since 2005. Teves said the proceeds of the sale of the Malampaya stake was already part of the fiscal program that projected the sale of P30 billion worth of state assets to support the budget. “We have secured all the legal requirements to proceed with the proposed sale of PNOC-EC stake in Malampaya,” Teves said. PNOC-EC acting chairman Crismel Verano however said questions may be raised on the timing of the sale. PNOC-EC owns a 10-percent stake in the Malampaya gas field and the rest are held by Shell Philippines Exploration B.V. and Chevron Malampaya Llc., which hold 45 percent each. “Why not give the incoming [national] administration the right to decide whether to sell the Malampaya stake or not?” Verano added.... MORE Source:  The Daily Tribune URL: http://www.tribuneonline.org/headlines/20100521hed2.html

HEADLINES Smartmatic admits PCOS errors on poll day Gov’t sets midnight P17-B Malampaya stake sale Palace warns of political firestorm over fraud raps LP to get juicy posts in House Bongbong says he’s open to presidency Bangkok riots escalate; Pinoys in Thailand safe — DFA