Potential Razon entry to boost Malampaya financial standing: DOE

ABS-CBN News

Posted at Jun 03 2022 04:14 PM

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MANILA - The potential entry of Enrique Razon's Prime Infra Holdings could usher in progress and improve the financial standing of the consortium responsible for running the Malampaya gas project, Department of Energy Secretary Alfonso Cusi said Friday.

The ports and casino magnate's firm on Thursday said it was interested in buying a controlling stake in the Malampaya gas project from Dennis Uy's Udenna Corp.

"Their involvement could further improve the financial standing and technical experience of the consortium and more importantly, facilitate the progress of much needed and urgent development of Malampaya, given the depleting reserves in the existing wells," Cusi said in a statement. 

Prime Infra did not disclose the amount and the number of shares it intends to buy. It said the acquisition process has kicked off.

Uy's Udenna Corp earlier purchased Malampaya shares from Chevron and Shell. 

Razon said Prime Infra's acquisition is subject to the consent and approval of concerned parties including the DOE, the Philippine National Oil Company Exploration Corp (PNOC-EC), and other regulatory and lending bodies.

Malampaya supports 20 percent of the country’s electricity requirements. Its service contract is set to expire in 2024.

“Natural gas is a critical transition fuel and the modern, state-of-the-art infrastructure built to harness this valuable transition fuel attracted us to pursue this deal," said Razon, who chairs Prime Infra.

Razon earlier said the firm would invest in Uy's casino resort projects in Cebu and Clark.