Shell Plans to Sell Stake in Philippines Gas Field
Anglo-Dutch Shell is looking to sell its 45% stake in the Malampaya gas field offshore Philippines, it told NGW on September 25. Shell is the operator of the project.
“As part of an ongoing portfolio rationalization to simplify and increase the resilience of its business, Shell is exploring its options with a view to divest its interest in SC38 (Malampaya). Shell would ensure a smooth transition of the asset to a credible buyer who would be well placed to optimize the value from Malampaya,” the company said.
In March this year, Udenna Corp closed the deal to acquire Chevron’s 45% stake in the offshore gas field. Udenna, backed by local businessman Dennis Uy, said its subsidiary, UC Malampaya Philippines, fully acquired shares of Chevron's subsidiary, Chevron Malampaya.
The governement has expressed interest in hiking its stake in the project. Philippines energy secretary Alfonso Cusi earlier this year said that the government’s plan to raise its stake in the project would need to go through rigorous evaluation again. State-run Philippine National Oil Company (PNOC) owns a 10% stake in the project.
The Malampaya gas project supplies fuel to around 40% of gas-fired plants in Luzon with over 3 GW capacity. The Malampaya gas field is declining and gas supplies for the country’s power plants are looking ever less reliable.
With no new local gas supplies expected, the southeast Asian country is looking to import LNG to fuel its power plants. There are four import projects under consideration at present and first LNG is expected in 2023.