Malampaya Energy XP Pte Ltd., a subsidiary of Udenna Corp., signed an agreement with Shell Petroleum NV to acquire Shell Philippines Exploration BV (SPEX), which holds a 45% share and operatorship of Service Contract 38 (SC38) including Malampaya gas field off Northwest Palawan Island.
Consideration for the sale is $380 million, with additional payments of up to $80 million from 2022-2024 contingent on asset performance and commodity prices, Shell said in a May 20 release.
The major components of Malampaya include subsea wells and flowlines, a shallow water platform and a depletion completion platform to process natural gas, a catenary anchored leg mooring-buoy for the export of liquid condensate, a 504-km long gas export pipeline on the seabed, an onshore gas plant and pipeline in Batangas City.
This project will be 100% operated by Filipinos following the deal, with Malampaya Energy (45%), Philippine National Oil Co. Exploration Corp. (10%) and UC38 LLC (45%) as joint venture partners, Malampaya said in a separate release.
Malampaya delivers a fifth of the Philippines' growing electricity requirements through the supply of natural gas to five power plants in Luzon. The asset has been in operation since 2002.
Belinda Racela, a Malampaya Energy executive, said the company is accelerating exploration and production plans to extend the life of Malampaya field.
SPEX staff will continue their employment under the new ownership, Shell said.
Subject to partner and regulatory consent, the transaction is targeted to complete by end 2021.
