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Dennis Uy, PNOC-EC interested to acquire Shell stake in Malampaya

Businessman Dennis Uy has formally indicated that his company Udenna Corporation, along with state-run Philippine Nationa Oil Company-Exploration Corporation (PNOC-EC), are interested to acquire the 45-percent stake being unloaded by Shell Philippine Exploration B.V. (SPEX) in the multi-billion dollar Malampaya gas field project.



He said Uy’s company will acquire the shareholdings of Shell in a joint venture with PNOC-EC so they can have a full hold of the gas field venture – even on the operations sphere of the business.


In a statement to the media, Udenna Group Spokesperson Raymond Zorrilla said the remaining consortium-members are seen as “the logical choice to acquire the Shell stake in order to ensure continued employment and certainty to the local workforce and as importantly to customers and stakeholders who rely on Malampaya’s continued safe and reliable operations in a manner which minimizes disruption.”


The remaining shareholders in Malampaya are UC Malampaya Philippines Ptd. Ltd. which is a subsidiary of Udenna Corporation and a majority shareholder with 45-percent interest in the gas field; while PNOC-EC holds the balance of 10-percent interest.


Zorrilla emphasized their company “firmly believes that Malampaya is a high quality asset, strategic to the future welfare and energy security of the country and welcome our partner PNOC-EC to join us in taking over the field on a 100-percent basis.”


PNOC-EC’s parent firm Philippine National Oil Company (PNOC) already indicated last week that the government has its sights set on the Shell stake that had been announced for divestment last week.


It was also Udenna which purchased the 45-percent share of American energy giant Chevron in the Malampaya project in a transaction that was sealed in March this year.


Following Shell’s sale plan announcement, Udenna noted that it will “work together with its other partner PNOC-EC to ensure the ongoing reliable and safe operations of the asset.”


The contract of the Malampaya field is due to expire in 2024, but this currently has pending application for license extension with the Department of Energy (DOE). Once extended, the production life cycle of the field is seen extendible for another 6-7 years.


The Malampaya field supplies gas fuel for the electricity generation of more than 3,200 megawatts of power capacity, which underpins the energy requirements primarily of Luzon grid.


Source: Manila Bulletin (https://mb.com.ph/2020/09/28/dennis-uy-pnoc-ec-interested-to-acquire-shell-stake-in-malamapaya/?utm_source=rss&utm_medium=rss&utm_campaign=dennis-uy-pnoc-ec-interested-to-acquire-shell-stake-in-malamapaya)

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