Chevron Corp. said it expects to close the sale of its Malampaya assets in northwest Palawan to Udenna Corp. controlled by businessman Dennis Uy within the first half.
Chevron, in an investor presentation report, confirmed the divestment of a 45-percent stake in the $4.5-billion Malampaya gas project, the country’s largest gas-producing facility.
“SPA [sale and purchase agreement] signed on Oct. 25. Expected to close in first half 2020,” the company said.
Udenna earlier announced the signing of the SPA to acquire the entire shareholdings of Chevron Malampaya LLC, a wholly-owned subsidiary of Chevron Philippines Ltd.
“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,” Uy, Udenna chairman and chief executive, said earlier.
UC Malampaya Philippines Pte. Ltd., a wholly-owned subsidiary of Udenna, signed the SPA on Oct. 25 last year to acquire 100 percent of the shares of Chevron Malampaya, which owns a 45-percent interest in the Malampaya gas field in the Philippines.
The other Malampaya consortium members are Shell Philippines Exploration BV with a 45-percent stake and state-run PNOC Exploration Corp. with 10 percent.
The Malampaya gas field is an energy asset of significant national importance, being the Philippines’ largest and only commercially producing gas field.
Malampaya has been the cornerstone of the country’s gas industry and continues to service 20 percent of the national demand for electricity.
Udenna said the strategic nature of the Chevron asset underpinned Udenna’s investment in Malampaya.
“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.