Shell Petroleum N.V. signed an agreement with Malampaya Energy XP Pte Ltd, a subsidiary of Udenna Corp., for the sale of its 100 percent shareholding in Shell Philippines Exploration B.V. (SPEX) equivalent to a 45 percent operating interest in Service Contract 38 which includes the Malampaya gas field.
The transaction with a base consideration of $380 million with additional payments of up to $80 million between 2022 and 2024 contingent on asset performance and commodity prices will allow Dennis Uy’s flagship company with 90 percent ownership of the asset.
Shell Petroleum said in a statement the transaction is still subject to partner and regulatory consent but targeted to be completed by the end of the year.The company added that staff of SPEX will continue their employment under the new ownership to assure and provide continuity of operational reliability and safety of the asset.
It added the deal has no impact on other Shell businesses in country.
The remaining 10 percent of the Malampaya asset is being held by the state-run firm, PNOC-Exploration Corp. – Jed Macapagal
