Page 10 - AsianOil Week 21 2021
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The three companies signed a heads of Yunianto: “This project is one of PGN’s pri-
agreement (HoA) that will see PGN work orities in providing an integrated LNG supply
with KPI, Badak LNG and PIS on LNG chain. Hopefully, the planned integrated sup-
infrastructure, storage and breakbulking ply chain and LNG infrastructure will be able
facilities, and LNG transportation options to meet the gas needs of Cilacap refinery in a
respectively. timely manner.”
The project falls under the government’s He added that the project was expected to
Small Scale Land Based Regasification Termi- help reduce the country’s oil and gas imports and
nal scheme, which was launched in 2016 to help slash the trade deficit in the process.
deliver on Indonesian President Joko Widodo’s The Indonesian government has been seek-
goal of reaching full electrification in the country ing to limit energy imports in recent years as it
by 2019. tries to improve the country’s trade balance. In
Pertamina logistics and infrastructure 2018, for example, Jakarta introduced a rule that
director Mulyono said the project would help required upstream contractors to sell almost
develop southern Central Java’s retail LNG all of their output to Pertamina, exempting
market, while the refinery’s use of gas would existing long-term export agreements from the
cut the group’s costs by $58.5mn per year. requirements.
Udenna snaps up Shell’s
stake in Philippine gas field
PHILIPPINE conglomerate Udenna has
reached a deal with Royal Dutch Shell to buy the
latter’s 45% stake in the Southeast Asian coun-
try’s largest natural gas field.
Udenna said on May 20 that its subsidiary,
Malampaya Energy, had signed a sale and pur-
chase agreement (SPA) to acquire Shell Philip- Racela added that her company had set up a
pines Exploration (SPEX), which operates the review board consisting of industry leaders as
Malampaya deepwater gas-to-power project. well as ex-Chevron and ex-Shell upstream spe-
The sale is priced at $380mn, with additional cialists to help advise the SPEX team.
payments of up to $80mn between 2022 and “We are excited about the future growth
2024 depending upon asset performance and opportunities at Malampaya. Our teams are
commodity prices. The deal is still subject to accelerating exploration and production plans
partner and regulatory consent, with Udennna to extend the life of the Malampaya field and
noting that it expected to conclude the sale expand supplies of affordable, safe, low-carbon
before the end of the year. and indigenous energy for the nation,” Racela
The deal follows Udenna’s purchase of US added.
super-major Chevron’s 45% stake in Malampaya, However, the head of the Senate Energy
which is located in service contract (SC) 38. The Committee, Sherwin Gatchalian, has called on
existing contract expires in 2024. the government to justify the merits of the deal
While the field supplies gas to five power in terms of Udenna’s technical, financial and
plants on the country’s main island of Luzon, legal capabilities.
the Philippines has forecast that Malampaya will Gatchalian filed a resolution late last week to
run dry by 2027. However, the field may see its force the Department of Energy (DOE) to reveal
life extended through additional drilling work, its plans for Malampaya, given Shell’s exit as well
given that original projections envisioned the as the impending expiry of both the field’s ser-
field reaching its end of life in 2023. vice contract and reserves.
Malampaya Energy chief Belinda Racela said: He said: “It is critical for the DOE to ensure
“The ongoing safety and reliability of Malam- that whoever gets hold of Shell’s interest should
paya is our top priority and will be delivered by have not just similar experience or capacity, but
the same experienced team of upstream pro- more so the technical, financial and legal capa-
fessionals from SPEX working with consistent bility to operate the Malampaya project or to be
practices.” a service contractor.”
P10 www. NEWSBASE .com Week 21 27•May•2021
