Prime Exploration Pte. Ltd., a subsidiary of Prime Infrastructure Capital Inc. (Prime Infra), is waiting for the Department of Energy (DOE) and the PNOC Exploration Corp. (PNOC-EC) to grant consent on its complete takeover of the operations of the Malampaya natural gas resource.
In a statement , Prime Infra said it signed a share purchase agreement acquiring MEXP Holding Pte. Ltd. (MEXP) from a subsidiary of Dennis Uy-led Udenna Corp. but did not elaborate the amount involved.
MEXP previously signed an agreement with Shell Petroleum N. V. acquiring Shell Philippines Exploration B. V. (SPEX) from the latter.
SPEX owns 45 percent participating interest in the Malampaya project and is the operator of the consortium. The other 45 percent is held by UC38 LLC, another subsidiary of Udenna Corp. while the remaining 10 percent is held by the government via PNOC-EC.
Prime Infra said once it obtains the consent of DOE and PNOC-EC, it will assume full ownership and control of SPEX.
“Prime Infra’s acquisition of MEXP reflects our shared commitment with the national government to help maintain energy security and independence as we transition to a renewable energy-fueled Philippine economy… We believe that gas is an important transition fuel in the near-term, reducing the need for baseload fossil fuels like coal. Hence, we intend to accelerate investments on the Malampaya gas field to improve the output of existing wells and if possible, develop new wells in the area once the license extension is secured from the government,” said Enrique K. Razon, Jr., Prime Infra chairman, in a statement.
Prime Infra said its investment in the expansion of Malampaya operations will be critical to provide the necessary infrastructure that would support the development of natural gas in the area and reduce the country’s reliance on imported fuel to help drive economic productivity and industrial growth.
Data as of May 2021 provided by the Senate Committee on Energy said that the Malampaya resource’s current estimated remaining fuel is at 858,834 million standard cubic feet and would be completely exhausted by the first quarter of 2027.
The asset is currently the sole source of fuel for the country’s natural gas-fired power plants which powers around 20 percent of the country’s entire electricity demand. – Jed Macapagal
