Shell exits Malampaya gas project off Philippines
Shell has sold its 45% stake in the Malampaya gas project offshore Philippines, it said on November 1. The deal was first announced in May last year.
The company completed the sale of its 100% shareholding in Shell Philippines Exploration (SPEX) to Malampaya Energy XP (MEXP), a subsidiary of Prime Infrastructure Capital (Prime Infra). In July 2022, Prime Infra entered into a share purchase agreement acquiring MEXP, the legal entity which had previously signed an agreement with Shell to acquire SPEX.
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This sale completion transfers control of SPEX from Shell to Prime Infra effective November 1. SPEX, under the ownership of Prime Infra, will continue to own a 45% operating interest and be the operator of the Malampaya gas field.
The other members of the Service Contract 38 consortium are UC38, a subsidiary of Udenna Corporation, and PNOC Exploration Corporation. They respectively own 45% and 10% of participating interests.
“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,” said Zoe Yujnovich, Shell’s upstream director. “This sale supports our strategy to create a resilient and competitive upstream portfolio”.
The Malampaya field, discovered in 1991 and brought online just over a decade later, supplies gas to four power plants on the island of Luzon. But it is expected to run dry by 2027, according to the Philippines' energy department.