MVP makes offer for SPEX stake in Malampaya

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    A consortium led by businessman Manuel Pangilinan’s MVP Group submitted last week a final non-binding offer to take over Shell Philippines Exploration B.V.’s (SPEX) stake in the operations of the Malampaya gas-to-power project in Batangas.

    Pangilinan said the offer was made by First Pacific Co. Ltd. and Philex Mining together with one or two other banks that he declined to identify.

    “It is a contested offer. They (SPEX ran a process and engaged an international investment bank. I don’t know how many submitted a bid,” Pangilinan said at the virtual briefing of the Manila Electric Co. which he chairs.

    Philex Mining, which Pangilinan also chairs, is part owner of PXP Energy which in turn has a stake in Forum Energy that holds a 70-percent interest in Service Contract 72 Reed Bank offshore west Palawan which contains the Sampaguita gas discovery.

    Pangilinan is chief executive officer and managing director at First Pacific.

    “(Shell’s offer has a) term sheet … it may not be specific but … (is) enough to give guidance as to what sort of terms we should offer. Obviously, we did not follow all of the terms of reference…but since we have requested our due diligence, it covered certain things. It’s up to Shell to conclude whether those terms are acceptable to them or not,” Pangilinan said,

    Last year, Pangilinan announced his Group through First Pacific and PXP Energy was in talks with JP Morgan to advise them on the transaction.

    SPEX earlier expressed intentions to divest its 45-percent interest in the country’s only source of natural gas fuel.

    SPEX and Dennis Uy’s Udenna Corp. each has a 45-percent stake in the resource and the remaining 10 percent is owned by the government through PNOC-Exploration Corp.