Following consent from the joint venture partners and regulatory approval, Shell Petroleum N.V. (Shell Petroleum) has completed the sale of its 100% shareholding in Shell Philippines Exploration B.V (SPEX) to Malampaya Energy XP Pte Ltd (MEXP), a subsidiary of Prime Infrastructure Capital Inc (Prime Infra).
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.
“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”.
This deal has no impact on other Shell businesses in the country. The Philippines remains an important country for Shell after over a century of successful operations. Shell will continue to pursue opportunities in the Philippines where it can leverage its global expertise in line with its Powering Progress strategy.
- Shell Petroleum signs agreement to sell interest in Malampaya, Philippines in May 2021.
- 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.