Oil & Gas
Shell to Sell Interest in Malampaya in Philippines
Shell Petroleum NV has signed an agreement with Malampaya Energy XP Pte Ltd (a subsidiary of Udenna Corporation), for the sale of its 100% shareholding
Shell Petroleum NV has signed an agreement with Malampaya Energy XP Pte Ltd (a subsidiary of Udenna Corporation), for the sale of its 100% shareholding in Shell Philippines Exploration BV. SPEX holds a 45% operating interest in Service Contract 38, which includes the producing Malampaya gas field. The base consideration for the sale is USD 380 million, with additional payments of up to USD 80 million between 2022 to 2024 contingent on asset performance and commodity prices. Subject to partner and regulatory consent, the transaction is targeted to complete by the end of 2021.
SPEX staff will continue their employment under the new ownership, providing continuity and contributing to ongoing operational reliability and safety. Malampaya and its staff have made significant contributions to the Philippines and to the local community over the past two decades and are expected to continue playing an important role in providing energy for the Philippines.
The transaction has an effective date of January 1, 2021.
SPEX received its license to operate in the Philippines in 1991. Since then they have become 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 indigenous gas that powers a significant portion of the country’s growing electricity demand.
The major components of Malampaya include the following: 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-kilometer long gas export pipeline on the seabed, an onshore gas plant and pipeline in Batangas City.
The other partners in SC38 are UC38 LLC, a subsidiary of Udenna Corporation (45%), and Philippine National Oil Company Exploration Corporation (10%).https://www.shell.com/media/news-and-media-releases/_jcr_content/pagePromo/image.img.960.jpeg/1617988716347/woman-at-work.jpeg