Udenna Corp. of businessman Dennis Uy has signed an agreement to acquire the entire shareholdings of Chevron Malampaya LLC, a wholly-owned subsidiary of Chevron Philippines Ltd.
“At Udenna, we believe in the benefit of promoting natural gas as an essential fuel to support the country’s growing energy needs and economic growth. The acquisition of Chevron’s interest in the Malampaya gas field marks an important milestone for Udenna, fitting strategically with our long-term ambitions of developing a sustainable clean energy business in the Philippines,” said Uy, Udenna chief executive officer and chairman, in a statement.
Udenna said the acquisition marked an important milestone in the bilateral discussions between Chevron and Udenna over the past 12 months, and demonstrated “our close collaboration in achieving a positive outcome for all parties involved.
UC Malampaya Philippines Pte. Ltd., a wholly-owned unit of Udenna, signed the sale and purchase agreement on October 25 that led to the acquisition of 100 perent of the shares of Chevron Malampaya, which owns a 45-percent interest in the Malampaya gas field in the Philippines.
Other Malampaya consortium members are Shell Philippines Exploration BV with am equal 45-percent stake and state-run PNOC Exploration Corp. with 10 percent.
“It’s a private transaction and as long as it meets the terms and standards in the concession agreement, the interest of the country is protected, it’s fine with us,” Energy Secretary Alfonso Cusi said when asked about the deal.
The Malampaya gas field in offshore Palawan is an energy asset of significant national importance, being the Philippines’ largest and only commercially producing gas field.
Malampaya for over two decades has been the cornerstone of the country’s gas industry and continues to provide approximately 20 percent of the national demand for electricity.
Udenna said the strategic nature of the Chevron asset underpinned Udenna’s investment in Malampaya.
The company said it carefully assessed and established a plan for the future development of the Malampaya field and its surrounding areas to ensure the future of Philippines energy security.
The completion of the transaction remains subject to regulatory approvals, including from the Philippine Competition Commission.
Udenna said it was not a participant in any other upstream fields nor in any links of the gas-to-power value chain, and as a result was free of any conflicts of interest with regards to the acquisition.
“We look forward to working with the joint venture partners, Shell and PNOC, and Malampaya’s key stakeholders, including the Philippines Department of Energy, to ensure that Malampaya continues to play an important role in sustainable nation building in the Philippines,” the company said.