DOE Consults Advisers on Sale of Shell Stakes in Malampaya

The Department of Energy (DOE) has consulted financial and technical advisers that will pave the way for the sale of Shell Philippines Exploration B.V. (SPEX) operating stake in the Malampaya asset to Prime Exploration Pte. Ltd. owned by billionaire Enrique Razon.

Former President and CEO of the Philippine National Oil Company-Exploration Corporation (PNOC-EC) and Chairman of the Board of the Shell Malampaya Foundation, Rufino B. Bomasang, was selected as the Chairman of the special technical advisers.

“This pool of advisers is expected to assist the DOE in ensuring that its decisions on matters relating to the Malampaya service contract consider all the relevant factors and are founded on sound technical analyses,” said Energy Secretary Raphael P.M. Lotilla.

The target schedule of turnover of operations of Malampaya to Razon’s company is set for the end of the year.

“We want to assure the public that the DOE will exercise the utmost care and diligence, in carrying out its mandate involving the country’s upstream oil and gas sector in general, including the country’s biggest gas-to-power initiative to date—the Malampaya-Camago project,” mentioned Lotilla.

Lotilla also mentioned that “these advisers are highly regarded in their fields of expertise.”

The acquisition of Razon in the operating stake of Malampaya will be via the Malampaya Energy XP (MEXP) which is a subsidiary company of Udenna Corporation owned by Dennis Uy, who recently made a $460 million sale and purchase agreement (SPA) for Shel”s interest in the Philippine commercial gas field.

Source: Manila Bulletin