Philippine Government To Sell Part of Malampaya Gas Stake

The Philippine government will offer to the public a portion of its stake in the Malampaya natural gas project, according to Energy Secretary Vincent Perez. One of the goals of the sale is to give the stock market a boost and provide the government with much needed funds. Approximately 4.9 percent of the government's 10-percent stake in the project would be sold through an initial public offering. The $4.5 billion Malampaya gas project, the country's only gas field, has reserves of 2.7 trillion cubic feet of gas and 85 million barrels of condensate. The government stake is currently held by Philippine National Oil Co's exploration subsidiary, PNOC Exploration Corp. "We would like the investing public to get a chance to participate in what is a landmark project," Perez said. He said newspaper reports that the government hoped to raise around $15 million from the sale were incorrect as pricing for the offering had yet to be set.

Along with the government, key stakeholders include the Shell with 45 percent and ChevronTexaco with 45 percent.