Pimentel said President Arroyo should heed the suggestion of the Petroleum Association of the Philippines not to sell the government’s stake in Malampaya.
He said the Department of Energy should also explain why the gas output of the Malampaya wells is under-utilized and under-marketed which is inconsistent with the government’s policy to rely more on indigenous fuel sources to conserve on foreign exchange.
"There is a move, I understand, for the government’s stake in Malampaya to be privatized and sold to interested parties in the private sector. My position on that is it might be unwise for us to do that because Malampaya is an earning proposition," Pimentel said.
Pimentel said that it would be more advantageous to the government to keep its ownership of Malampaya for financial and strategic purposes.
"My understanding is that the government would be able to repay back in five to six years its obligations to British-owned Shell which undertook the exploration and development of the Malampaya natural gas wells off the Palawan island" Pimentel said.
He said that not only for the National Government, but the local government units of Palawan as well would benefit from the dividends from the commercial production and sale of Malampaya gas.
He said that the planned privatization of government’s stake in the Malampaya gas is as objectionable and ill-conceived as the proposed sale of the government’s 40-percent stake in Petron Corp.
"Rather than maximize the Malampaya gas production, it is being sacrificed in favor of coal-fired plants, Pimentel said.