MANILA — Enrique Razon's Prime Infra said it signed a share purchase agreement for its acquisition of Malampaya gas field operator MEXP Holdings Pte Ltd (MEXP) from a subsidiary of Dennis Uy's Udenna Corp.
In a statement, Prime Infra said its subsidiary Prime Exploration Pte Ltd signed the deal for the acquisition.
MEXP earlier acquired Shell Philippines Exploration B.V (SPEX) from Shell which owns 45 percent participating interest in the Malampaya deep-water gas-to-power project, Prime Infra said.
The change in control is subject to the consent of PNOC EC and the Department of Energy, said Prime Infra.
"Once such consents are given and the transition process for a safe and seamless handover of operations is completed, Prime Infra will assume full ownership and control of SPEX," it said.
UC38 LCC, a subsidiary of Udenna Corp, and the PNOC Exploration Corp (PNOC EC) are the other members of the consortium holding a 45 percent and 10 percent participating interest in Malampaya.
Uy's Udenna Corp earlier acquired the stakes of Chevron and Shell in Malampaya.
“Prime Infra’s acquisition of MEXP reflects our shared commitment with the national government to help maintain energy security and independence as we transition to a renewable energy-fueled Philippine economy,” said Razon, who sits as the chairman of Prime Infra.
“We believe that gas is an important transition fuel in the near-term, reducing the need for baseload fossil fuels like coal. Hence, we intend to accelerate investments on the Malampaya gas field to improve the output of existing wells and, if possible, develop new wells in the area once the license extension is secured from the government,” he added.
The company said the acquisition will add to Prime Infra's energy portfolio and will help reduce the country's dependence on imported fuel.
Prime Infra, Shell and Udenna are working together to achieve a "smooth transition" of SPEX to Prime Infra, the company said.
“We look forward to this opportunity to partner with Prime Infrastructure and PNOC EC, as we explore more ways to fulfill our common vision to make Malampaya continue to operate safely and reliably to strongly support our country's need for indigenous and sustainable energy for many years to come,” said Udenna Corporation Chairman and CEO Dennis Uy.
Malampaya is among the country's most important assets. Its consortium license is set to expire in 2024.