Prime Infra eyeing Malampaya contract extension

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Prime Infrastructure Capital Inc. is looking to secure a contract extension for the Malampaya gas-to-power project as it assumes full ownership of the gas field’s operator. 

The Enrique Razon-led company recently completed its acquisition of Shell Philippines Exploration B.V (SPEX). 

In a report by the Philippine Star, Prime Infra said that its next urgent step for the gas field is to sustain and expand production amid the growing electricity demand of the country. 

Prime Infra president and CEO Guillaume Lucci said the company is looking to “further the potential of Service Contract 38.” 

The Malampaya Consortium operates under SC 38, which is set to expire in early 2024. The gas field is seen to be completely depleted by the first quarter of 2027. 

The Department of Energy recently approved Prime Infra’s acquisition of Shell’s 45% interest in Malampaya. Joint venture partners under the consortium, UC LLC and the Philippine National Oil Company (PNOC) Exploration Corp., have likewise given their consent on the sale. 

Following the acquisition, SPEX will be renamed Prime Energy Resources Development B.V. The company will also absorb 300 of SPEX’s employees. 

Earlier, Australian company VGS & Associates Pty. Ltd. said that it will provide technical support and expertise as Prime Infra acquires operations in Malampaya.