DOE approves sale of Malampaya stake to Razon firm | Inquirer Business

DOE approves sale of Malampaya stake to Razon firm

/ 04:00 PM October 03, 2022

MANILA, Philippines—The Department of Energy (DOE) announced on Monday that it cleared Shell Group’s sale of its 45 percent stake in the Malampaya gas project to Prime Infrastructure Capital Inc. of tycoon Enrique Razon Jr.

In a statement, the DOE said Prime Infra “was found to be technically, financially and legally qualified” as the new operator of the Malampaya gas platform.

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PNOC Exploration Corp., the exploration arm of state-run Philippine National Oil Co., had already consented to the sale being a member of the Malampaya consortium.

“The DOE’s approval is conditioned on SPEX remaining to be a subsidiary of Prime Infra, and on the continuing validity of Prime Infra’s commitments and undertakings to the DOE in respect of SPEX’s obligations as operator of Malampaya Service Contract 38,” the DOE statement added.

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In July 2022, Prime Infra entered into a share purchase agreement acquiring MEXP Holding Pte Ltd, which had previously signed an agreement to acquire 100 percent shares of SPEX.

“We welcome DOE’s thorough review and subsequent approval of the SPEX sale given the urgency to sustain the operations of Malampaya—a vital energy installation and symbol of national pride,” Razon said in a statement by Prime Infra.

“Prime Infra’s energy portfolio has always been aligned with the national government’s objective towards attaining energy independence and security, while reducing the country’s reliance on fossil fuels,” the statement added, quoting Prime Infra president and CEO Guillaume Lucci.

The Malampaya project is one of the country’s most important power assets, producing natural gas for power plants in Batangas City that generate up to 20 percent of Luzon’s total electricity requirement. It started operations in 2001 with license for the project expiring in 2024.

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TAGS: Enrique Razon, Malampaya, Shell
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