March 12, 2020 | 12:08 am
UDENNA CORP. said on
Wednesday that its unit had completed the acquisition of Chevron Malampaya
LLC’s 45% stake in the Malampaya gas-to-power project located offshore of
northwest Palawan.
“We see immense
potential in natural gas, the fuel of the future, and we are optimistic and
excited to bring its full benefits to Filipinos,” Udenna Chairman Dennis A. Uy
said in a statement.
The completed deal
comes months after Udenna announced in November last year that its subsidiary
UC Malampaya Philippines Pte Ltd. had signed a sale and purchase agreement to
acquire Chevron’s stake in the deepwater project, the country’s only source of
natural gas in large commercial quantity.
The Malampaya field supplies five power plants in Luzon, serving 30% of the
national demand for electricity with a capacity of 3,200 megawatts.
UC Malampaya is joining
Shell Philippines Exploration B.V., which also has a 45% stake, and state-owned
Philippine National Oil Co. Exploration Corp. (PNOC-EC), which owns the
remaining 10%, in developing the almost two-decades-old Malampaya project under
the Department of Energy (DoE)-awarded Service Contract 38.
“We look forward to
working with our joint venture partners, Shell and PNOC-EC, and Malampaya’s key
stakeholders, including the Philippine [DoE], to ensure that Malampaya
continues to play an important role in developing a sustainable clean energy
business in the Philippines,” Mr. Uy said.
Udenna’s statement
could mean that PNOC-EC did not exercise its right to acquire 10% of the shares
sold by Chevron.
In December last year,
DoE Secretary Alfonso G. Cusi told reporters that PNOC-EC was exercising its
right “because we feel that the acquisition price is very advantageous for [the
company] to invest.”
Mr. Cusi chairs the
board of PNOC-EC.
Sources at the DoE,
Shell Philippines and PNOC either declined or did not respond when asked to
validate whether PNOC-EC did not exercise its right.
The deal between Udenna unit UC Malampaya and the unit of Chevron Philippines,
Ltd. to buy the full stake of the consortium partner was signed on Oct. 25,
2019. The parties did not disclose the value of the acquired stake.
Udenna holds Mr. Uy’s
interest in diversified businesses, including distribution and retail of
finished petroleum products, shipping and logistics.
The Davao City
businessman’s portfolio has expanded to property development, education, food,
gaming, tourism, and infrastructure. — Adam J. Ang
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