Enrique Razon-led Prime Infastructure Capital Inc. is set to acquire a major stake in the Malampaya gas-to-power project in offshore Palawan after taking over the unit owned by Dennis Uy’s Udenna Corporation.
Prime Infra announced over the weekend that its subsidiary Prime Exploration Pte. Ltd. has signed a share purchase agreement acquiring MEXP Holding Pte. Ltd (MEXP), which first acquired the 45% share of Shell Philippines Exploration B.V (SPEX) in Malampaya in May 2021, but was blocked by the Philippine National Oil Co. Exploration Corp. (PNOC-EC).
The Razon-led company, however, did not disclose the amount for acquiring SPEX’s share.
Enrique Razon said that Prime Infra looks to accelerate the investments in Malampaya to improve the output of the existing wells, and at the same time, develop new wells in the area once the license extension is secured from the government.
Shell said that it is working closely with MEXP and Prime Infra to ensure that the change in ownership will not disrupt the transition process. It added that it is working with the PNOC-EC and the Department of Energy (DOE) to complete the deal by the end of the year.
Prime Infra first announced its plans to acquire a controlling stake in Malampaya in June.
PNOC and DOE would need to provide consent to the change in control of the Malampaya.
In a statement, Dennis Uy said that Udenna is looking forward to working with Prime Infra and PNOC-EC to make Malampaya continuously operate safely and reliably to support the country’s need for indigenous and sustainable energy.
The Malampaya is seen to be completely depleted by the first quarter of 2027. It currently accounts for 20% of the country’s total power requirement.