MANILA, the Philippines – Shell Petroleum has agreed to sell Shell Philippines Exploration (SPEX) to Udenna Corp. subsidiary Malampaya Energy XP.
The transaction, which should close later this year, carries a base consideration of $380 million, with further payments of up to $80 million between 2022 and 2024 depending on performance and commodity prices.
Wael Sawan, Shell’s upstream director, said: “Since it began commercial operations in 2002, Malampaya has supplied a significant portion of the Philippines’ energy demand and it will continue powering the country with indigenous gas following a safe transition of the asset and its experienced workforce.
“Today’s announcement is consistent with Shell’s efforts to shift our Upstream portfolio to one that is focused on nine core positions.”
The Malampaya field started producing in 2002. The facilities comprise subsea wells and flowlines; a shallow-water platform and a depletion completion platform to process natural gas; a catenary anchored leg mooring-buoy for the export of liquid condensate, a 504-km (313-mi) long subsea gas export pipeline; and an onshore gas plant and pipeline in Batangas City.
Other partners in SC38 are UC38 LLC, a subsidiary of Udenna, and Philippine National Oil Company Exploration Corp. (10%).