Shell completes exit from Malampaya

  • Shell Petroleum N.V. (Shell Petroleum) on 1 Nov 22 completed the sale of its stake in the operator of the Malampaya gas field to a unit of Razon-led Prime Infrastructure Capital, Inc. (Prime Infra).
  • In a statement, the company said its 100% shareholding in Shell Philippines Exploration B.V. (SPEX) has been transferred to Malampaya Energy XE Pte. Ltd. (MEXP), subsidiary of Prime Infra, effective on 1 Nov 22. SPEX will continue to operate the Malampaya gas field, where it still has a 45% operating interest. Shell said SPEX staff will continue to be employed under the new ownership.
  • The other members of the Service Contract (SC) 38 consortium are a subsidiary of Dennis Uy’s Udenna Corp., and PNOC Exploration Corp., which own a 45% and 10% interest, respectively. The Malampaya concession is set to expire by 2024.
  • The Malampaya gas field, which began commercial operations in 2002, supplies up to 20% of Luzon’s total electricity requirements, according to the Department of Energy (DoE). However, it is expected to be depleted by 2027.
  • Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message that investors will now be looking at Shell’s future prospects in the Philippines as it remains one of the market leaders in the energy sector.
  • Investors will also keep an eye on Prime Infra’s planned PHP28-bn initial public offering (IPO), which was postponed to the 1Q23 due to unfavorable market conditions.
  • The Philippines also has to prepare as Malampaya, the country’s only domestic commercial source of natural gas, runs out in the next few years.

External Link :