Royal Dutch Shell, through its subsidiary Shell Petroleum, has completed the previously announced sale of Shell Philippines Exploration (SPEX) to Malampaya Energy XP (MEXP).
In July this year, Prime Infrastructure Capital (Prime Infra) acquired MEXP, which has already signed an agreement to acquire SPEX in May last year.
Shell completes sale of Malampaya gas field assets. (Credit: Jethro Carullo on Unsplash)
SPEX owns a 45% stake in Service Contract 38 (SC38), which includes the Malampaya gas field and associated facilities, a part of the Malampaya Deepwater Gas to Power Project.
Shell Petroleum has completed the transaction after securing consent from the joint venture partners and regulatory approval.
With the closing of the transaction, Prime Infra obtains the control of SPEX from Shell, with immediate effect, and involves no change in SPEX workforce under the new ownership.
Under the ownership of Prime Infra, SPEX will continue to own a 45% operating interest and will serve as the operator of the Malampaya gas field.
The other partners of the Service Contract 38 consortium include UC38, a subsidiary of Udenna with a 45% stake, and PNOC Exploration Corporation (PNOC EC) with a 10% stake.
Shell upstream director Zoe Yujnovich said: “Since operations began in 2002, the Malampaya gas field has supplied an important part of the Philippines’ energy demand through the dedicated work of our partners and staff, past and present. This sale supports our strategy to create a resilient and competitive Upstream portfolio.”
SPEX secured its license to operate in the Philippines in 1990 and has become the operator of Malampaya to explore and develop SC38 offshore Northwest of Palawan.
The gas field began commercial operations in 2002 and provides fuel to power plants that account for around a fifth of the Philippines' electricity requirements, reported Reuters.
Shell said that the transaction will have no impact on its other businesses in the Philippines.
In addition, the company promised to continue operations in the Philippines, and leverage its global expertise under Powering Progress strategy.