LONDON — Shell Petroleum has completed the sale of Shell Philippines Exploration (SPEX) to Malampaya Energy XP (MEXP), a subsidiary of Prime Infrastructure Capital.
SPEX will continue to own a 45% operating interest in the offshore Malampaya gas field in Service Contract 38 (SC38). Other partners are UC38 LLC, a subsidiary of Udenna Corp., and PNOC Exploration Corp., with respectively 45% and 10% shares.
Shell agreed to sell its interest in Malampaya in May 2021. In July this year, Prime Infra entered a share purchase agreement to acquire MEXP, which had signed the earlier transfer arrangement with Shell.
SPEX received a license to operate in the Philippines in 1990 and went on to explore and develop SC38, northwest of Palawan, with commercial operations at the Malampaya project starting in 2002.
The field supplies gas to five power plants in Luzon, with a combined capacity of 3,200 MW. Following the initial development, SPEX added two further production wells in 2013 under Malampaya Phase 2.
Two years later, Malampaya Phase 3 involved the design, fabrication and installation of a new depletion compression platform, which was also the first offshore platform to be fully constructed in the Philippines.