Shell sells Malampaya stake to Udenna unit
SHELL PETROLEUM N.V. has forged an agreement with Udenna Corp. subsidiary Malampaya Energy XP Pte Ltd. for the sale of its 100% shareholding in Shell Philippines Exploration B.V. (SPEx).
Shell said in a statement Thursday that the base consideration of the sale is at $380 million, with additional payments of up to $80 million between 2022 to 2024 contingent on asset performance and commodity prices.
The company said the transaction is aimed to be finished by the end of the year subject to partner and regulatory consent.
According to the company, SPEx has a 45% operating interest in Service Contract 38 (SC 38) that includes the Malampaya gas field.
“SPEx staff will continue their employment under the new ownership, providing continuity and contributing to ongoing operational reliability and safety,” the company said.
“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,” it added.
Shell Upstream Director Wael Sawan said that since starting commercial operations in 2002, Malampaya has provided a significant part of the country’s energy demand and will continue supplying power with indigenous gas after a safe transition of the asset and its workforce.
“Today’s announcement is consistent with Shell’s efforts to shift our Upstream portfolio to one that is focused on nine core positions,” Mr. Sawan said.
“Shell and the country leadership will always be grateful for the dedication, professionalism, and support that the entire SPEX organization has contributed to the wider Shell companies in the Philippines family in particular, and to our country in general,” said Cesar G. Romero, country chairman of Shell companies in the Philippines.
According to the company, the deal will have no effect on other Shell businesses in the country and will continue to pursue opportunities in the country.
To recall, other companies that have interests in SC 38 are UC38 LLC, a Udenna Corp. subsidiary, at 45%, and Philippine National Oil Co. Exploration Corp. at 10%. — Revin Mikhael D. Ochave
