Page 4 - AsianOil Week 22 2022

AsianOil COMMENTARY AsianOil

Prime Infra to take control

of Malampaya gas project

Prime Infra is buying a controlling stake in the Malampaya gas field

in the South China Sea, bolstering the field’s prospects to have its

life extended

INVESTMENT A major natural gas asset in the Philippines not claimed by Beijing – is used to generate up
is undergoing a further change in ownership. to 20% of the Philippines’ electricity consump-
WHAT: Prime Infra Holdings, which belongs to Philip- tion. The field’s service contract is due to expire
Prime Infra has said it pine tycoon Enrique Razon, announced on June in 2024, and Prime Infra intends to apply for an
will buy a controlling 2 that it would acquire a controlling stake in the extension while also investing in expansion of
stake in the Malampaya Malampaya gas field in the South China Sea the field.
gas field. from Udenna for an undisclosed amount. In its statement, the company described the
This comes after Udenna – owned by Dennis transition of operations at Malampaya from
WHY: Uy, a close ally of outgoing Philippine Presi- Shell Philippines to Prime Infra and Udenna as
It had previously been dent Rodrigo Duterte – acquired a 45% stake in “critically urgent”. It added that the two compa-
reported that Udenna Malampaya from Chevron in 2020. This was fol- nies needed to immediately plan for expansion
was considering selling lowed by the news that Udenna had also agreed of the project in order to ensure continuity of
the field. to buy Shell’s 45% stake in the field last year. That production.
transaction is yet to be completed, and requires “Natural gas is a critical transition fuel and the
WHAT NEXT: government approval. However, the two trans- modern, state-of-the-art infrastructure built to
The acquisition could actions have resulted in Udenna building up a harness this valuable transition fuel attracted us
mark at least a short- 90% stake in Malampaya, part of which is now to pursue this deal – all aspects of the project
term turnaround for due to be handed over to Prime Infra. State- tick off our environmental, social, and govern-
Malampaya as Prime owned PNOC Exploration owns the remaining ance (ESG) checklist that will allow us to con-
Infra seeks to extend 10% stake in the deepwater field. tribute more to the country’s transition from
its life. Prime Infra did not specify what size of stake expensive and volatile coal and imported fuel
it was buying in the field, apart from saying it prices to affordable cleaner and domestic energy
was a controlling interest. resources like natural gas,” stated Razon.
Udenna had previously said in December
Extending and expanding 2021 that operations at Malampaya may carry
Gas produced at the Malampaya field offshore on beyond the current projected lifespan of
Palawan – an area of the South China Sea that is the field, which runs until 2027. However,

Prime Infra Holdings
belongs to Philippine
tycoon Enrique Razon.

P4 www. NEWSBASE .com Week 22 03•June•2022