Shell Completes Sale of Interest in Malampaya in Philippines
Strategic Research Institute
Published on :
7 Nov, 2022, 4:30 am
Following consent from the joint venture partners and regulatory approval, Shell Petroleum has completed the sale of its 100% shareholding in Shell Philippines Exploration to Malampaya Energy XP, a subsidiary of Prime Infrastructure Capital. This sale completion transfers control of SPEX from Shell to Prime Infra effective November 1, 2022. SPEX staff will continue their employment under the new ownership.
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 LLC, a subsidiary of Udenna Corporation, and PNOC Exploration Corporation (PNOC EC). They respectively own 45% and 10% participating interests.
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.
SPEX received its license to operate in the Philippines in 1990. It then became 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 domestic gas that powers a significant portion of the country’s growing electricity demand.