"Our negotiations are in advanced stages now with the Korean group. But there is still no agreement yet to date," Energy Secretary Vincent S. Perez said, in a press conference.
The government has 10 percent stake in the Malampaya project through PNOC-Exploration Corp., the oil and gas exploration subsidiary of state-owned Philippine National Oil Co. (PNOC).
Perez, however, could not tell when the talks with the KOGAS-led consortium will be finalized.
The consortium includes Seoul City Gas, LG International Corp. and Daesung Industrial Co. Ltd.
KOGAS, the lead firm in the consortium, is one of the world’s largest single buyer of liquefied natural gas (LNG).
Based on the privatization plan, PNOC will divest 49 percent of its 10 percent stake in the Malampaya project to a strategic investor.
Aside from PNOC-EC, the other members of the Malampaya consortium are the Royal Dutch/Shell group’s Shell Petroleum Exploration B.V. and US oil major Chevron/Texaco. Malampaya, located in the South China Sea off the island of Palawan, is the largest energy project in the Philippines.
PNOC-EC formed and transferred its 10 percent stake in Malampaya and all its related debts to a new subsidiary, PNOC Malampaya Production Corp. (PMPC).
The deep-water gas-to-power project has started supplying natural gas to power plants in the main island of Luzon last year.
PNOC-EC is primarily engaged in the exploration and development of oil, gas and other energy resources. It can also purchase, operate and maintain all kinds of plants, warehouses, terminals, docks, piers, wharves and other water works facilities.