Filipino-Chinese businessman Dennis Uy has complete his acquisition of Chevron’s 45 % stake in the Malampaya natural gas project in offshore Palawan
This enables Udenna to work with the Malampaya joint venture partners, particularly operator Shell Philippines Exploration B.V. and government partner Philippine National Oil Co.-Exploration Corp.
For over two decades, Malampaya has been the cornerstone of the country’s gas industry and continues to service approximately 30% of the national demand for electricity. Since it began commercial operations in 2001, the Malampaya project has produced cleaner-burning natural gas which supplies five power plants in Luzon, the country’s largest island, with a combined capacity of 3,200 megawatts.
“We look forward to working with our joint venture partners, Shell and PNOC-EC, and Malampaya’s key stakeholders, including the Philippine Department of Energy, to ensure that Malampaya continues to play an important role in developing a sustainable clean energy business in the Philippines,” said Uy, chairman, and chief executive officer of Udenna
The transaction was approved by the Philippine Competition Commission (PCC) last January as it would not result in a substantial lessening of competition in the industry.
The Malampaya consortium hopes to find several new wells in areas near the Malampaya well which could provide new gas supply for the country for at least 10 years.
The consortium hopes to get an extension of the contract by another 15 years, of which five will be spent to dig and explore new wells.
Additional Report: Iris Gonazales
Image Source: Bilyonaryo, CNN Philippines, Philippine Power Insights
