Udenna Corp. yesterday said it had acquired the 45-percent stake of international petroleum giant Chevron in the Malampaya gas field in the waters off Palawan, having sealed the deal late last month.
In a statement, Davao-based businessman Dennis Uy said the deal involved the acquisition by UC Malampaya Philippines Pte Ltd., a subsidiary of Udenna, of 100 percent of the shares of Chevron Malampaya LLC, a subsidiary of Chevron Philippines Ltd.
The company did not disclose the value of the transaction.
“The signing of the share purchase agreement marks an important milestone in the bilateral discussions between Chevron and Udenna over the past 12 months, and demonstrates our close collaboration in achieving a positive outcome for all parties involved,” the company said.
Malampaya is operated by Shell Philippines Exploration BV, with the third joint-venture partner being the Philippine National Oil Company.
The Malampaya gas field is an energy asset of significant national importance, being the Philippines’ largest and only commercially producing gas field. For over two decades, Malampaya has been the cornerstone of the country’s gas industry and continues to service about 20 percent of the national demand for electricity.
“The strategic nature of the asset underpins Udenna’s investment in Malampaya,” the company said. “We have carefully assessed and established a plan for the future development of the Malampaya field and its surrounding fields, to ensure the future of Philippines energy security, as well as the benefit of our joint venture partners.”
Udenna chair and CEO Uy said his firm believed “in the benefit of promoting natural gas as an essential fuel to support the country’s growing energy needs and economic growth.”
“The acquisition of Chevron’s interest in the Malampaya gas field marks an important milestone for Udenna, fitting strategically with our long-term ambitions of developing a sustainable clean energy business in the Philippines,” he added.
The completion of the transaction remains subject to regulatory approvals, including that from the Philippine Competition Commission. Udenna said it was not a participant in any other upstream fields or in any links of the gas-to-power value chain.
“Udenna is free of any conflicts of interest with regards to this acquisition,” it said.
“We look forward to working with the joint venture partners, Shell and PNOC, and Malampaya’s key stakeholders," the company said.