MANILA, Philippines — The divestment of Shell Philippines Exploration B.V.(SPEX) in the Malampaya deep water gas-to-power project will not affect the country’s gas and power supply, Energy Secretary Alfonso Cusi said.
In a Viber message to The STAR, Cusi said the sale of SPEX’s interest in Malampaya is a business strategy of the company.
“It won’t affect our supply of gas and power even if there will be a change in ownership,” he said.
On Wednesday, SPEX announced it is exploring options to divest its interest in the Malampaya deep water gas-to-power project as part of its portfolio rationalization efforts.
“As part of an ongoing portfolio rationalization to simplify and increase the resilience of its business, Shell is exploring its options with a view to divest its interest in Service Contract (SC) 38,” SPEX managing director and general manager Don Paulino said in a statement.
Paulino said Shell would ensure a smooth transition of the asset to a credible buyer who would be well-placed to optimize the value from Malampaya.
“The Philippines remains an important country for Shell after over a century of successful operations and Shell will continue to pursue opportunities where it can leverage its global expertise in line with its strategy,” Paulino added.
Last March, Udenna Corp. of Davao-based businessman completed its acquisition of Chevron Philippines Ltd.’s 45 percent stake in the Malampaya project.
With the acquisition, Udenna became SPEX’s joint venture partner for the Malampaya project along with state-run Philippine National Oil Co.-Exploration Corp.
SPEX has a 45 percent interest while PNOC-EC has a 10 percent stake in the project.
Operating since 2001, the Malampaya offshore platform and onshore gas plant are key installations to the nation’s energy security. It is the only local producer of indigenous natural gas. It supplies up to 40 percent of Luzon’s electricity.
Malampaya’s contract is set to expire in 2024.