Shell, Prime Infra wrap up Malampaya gas field deal
BY LENIE LECTURA – NOVEMBER 2, 2022
from Business Mirror
Shell Petroleum N.V. (Shell Petroleum) has completed the sale of its entire shareholding in Shell Philippines Exploration B.V (SPEX) to Malampaya Energy XP Pte Ltd (MEXP), a subsidiary of Prime Infrastructure Capital Inc. (Prime Infra).
The completion of the sale transfers control of SPEX to Prime Infra effective November 1.
SPEX staff will continue their employment under the new ownership, the company said Tuesday.
SPEX, under the ownership of Prime Infra, will continue to own a 45-percent operating interest and be the operator of the Malampaya gas field. The other members of the Service Contract 38 consortium are UC38 LLC, a subsidiary of Udenna Corp., and PNOC Exploration Corp. (PNOC-EC). They respectively own 45 percent and 10 percent participating interests.
“Since operations began in 2002, the Malampaya gas field has supplied an important part of the Philippines’s energy demand through the dedicated work of our partners and staff, past and present,” said Zoe Yujnovich, Shell’s Upstream Director. “This sale supports our strategy to create a resilient and competitive Upstream portfolio.”
Shell said this deal has no impact on other Shell businesses in the country. The Philippines, it stressed, remains an important country for Shell after over a century of successful operations. The company assured it will continue to pursue opportunities in the Philippines where it can leverage its global expertise in line with its Powering Progress strategy.
SPEX received its license to operate in the Philippines in 1990. It then became operator of Malampaya to explore and develop SC38 offshore Northwest of Palawan.
Malampaya began its commercial operations in 2002. SPEX holds the technical skills, manpower and technology employed in day-to-day operations, providing the Philippines with domestic gas that powers a significant portion of the country’s growing electricity demand.
The Department of Energy announced last month that it has given its go signal to the Prime infra’s acquisition of the Malampaya gas project operator.
Prior the DOE approval, consents were given by the joint venture partners—UC38 LLC, with 45 percent stake, and the PNOC Exploration Corp. (PNOC-EC), with a 10 percent stake—in the Malampaya Service Contract 38 consortium.
