Shell has completed the sale of its stake in the Malampaya offshore gas field in the Philippines to Malampaya Energy XP Pte Ltd (MEXP), a subsidiary of Prime Infrastructure Capital Inc (Prime Infra).
Shell Petroleum signed an agreement to sell interest in Malampaya, Philippines, in May 2021.
The sale transfers control of Shell Philippines Exploration (SPEX) to Prime Infra effective November 1, 2022. SPEX staff will continue their employment under the new ownership, Shell said.
SPEX, under the ownership of Prime Infra, will continue to own a 45% operating interest and be the operator of the Malampaya gas field.
The other members of the Service Contract 38 consortium are UC38 LLC, a subsidiary of Udenna Corporation, and PNOC Exploration Corporation (PNOC EC). They respectively own 45% and 10% of participating interests.
“Since operations began in 2002, the Malampaya gas field has supplied an important part of the Philippines’ energy demand through the dedicated work of our partners and staff, past and present,” said Zoe Yujnovich, Shell’s Upstream Director. “This sale supports our strategy to create a resilient and competitive Upstream portfolio”.
Shell said that the sale did not affect other Shell businesses in the country.
"The Philippines remains an important country for Shell after over a century of successful operations. Shell will continue to pursue opportunities in the Philippines where it can leverage its global expertise in line with its Powering Progress strategy," Shell said.
SPEX received its license to operate in the Philippines in 1990. It then became operator of Malampaya to explore and develop SC38 offshore Northwest of Palawan. Malampaya began its commercial operations in 2002.
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