Metro Manila (CNN Philippines, October 3) — Ports and gaming billionaire Enrique Razon Jr. secured the Department of Energy’s (DOE) nod to hold a major stake in the Malampaya gas project.
After a “thorough review,” the DOE said in a statement Monday that it approved the move of Razon’s Prime Infrastructure Capital Inc. (Prime Infra) to acquire 45% interest of Shell Philippines Exploration BV (SPEX) in the Malampaya Service Contract 38.
Shell Philippines Exploration B.V. (SPEX) will become a subsidiary of Prime Infra as part of the condition following the approval, the DOE noted.
“Prime Infra was found to be technically, financially and legally qualified as a transferee and as successor to Shell as Operator of the Malampaya natural gas project,” it said.
“SPEX, as a Prime Infra subsidiary, will continue to be technically competent and financially capable to operate the Malampaya Service Contract 38,” the DOE said.
In July, Prime Infra disclosed its acquisition of Dennis Uy’s Udenna subsidiary MEXP Holding Pte. Ltd. While the Udenna unit signed a share purchase agreement with Shell to acquire SPEX early last year, the transaction was not pursued as state-run PNOC Exploration Corp. withdrew its consent.
Meanwhile, Prime Infra also issued a statement on Monday, welcoming the DOE’s decision.
“We welcome DOE’s thorough review and subsequent approval of the SPEX sale given the urgency to sustain the operations of Malampaya vital energy installation and symbol of national pride and to plan for the further development of the existing reserves in light of the current power under supply,” said Razon, chairman of Prime Infra.
“We will contribute by doing all that can be done to produce as much gas as possible to sustain production in support of the power demand in Luzon,” he added.
Prime Infra expects to assume full ownership and control of SPEX by November.
