First Pacific, partners submit offer to Shell for Malampaya stake

By Lorenz S. Marasigan – March 2, 2021
from Business Mirror

A platform at the Malampaya gas field is seen in this BusinessMirror file photo.

First Pacific Co. Ltd., the parent company of infrastructure conglomerate Metro Pacific Investments Corp., and its partners have submitted an offer for the acquisition of a 45-percent stake in Malampaya.

Manuel V. Pangilinan, the company’s managing director, said his group has finalized its intent on acquiring the shares of Shell Philippines Exploration B.V. (SPEx) in the offshore Palawan project that fuels 5 power plants with a combined capacity of 3,211 megawatts (MW).

“We have submitted our final non-binding offer to Shell. It was 5:01 pm last Friday. We’re looking at acquiring the Shell stake, and when we say we it’s really First Pacific,” Pangilinan said.

Pangilinan said the group that submitted the offer consists of First Pacific and subsidiary Philex Mining Corp., which partly owns PXP Energy Corp., an upstream oil and gas company.

The Malampaya gas field is being maintained and operated by a consortium led by SPEx. Other members include Udenna Corp. (UC), 45 percent, and state-led Philippine National Oil Co. Exploration Corp. (PNOC-EC), 10 percent.

UC, which is led by Davao businessman Dennis Uy, earlier bought the Malampaya stake from Chevron Malampaya Llc.

The consortium members were awarded Service Contract (SC) 38, allowing them to explore and develop an area in Northwest Palawan, Philippines. The gas field could be depleted by 2024.

The Shell stake is also being eyed by UC and reportedly, San Miguel Corp.