MANILA, Philippines — Davao-based businessman Dennis Uy has completed his acquisition of Chevron’s 45 percent stake in the Malampaya natural gas project in offshore Palawan.
With the acquisition, Udenna is now ready to work with the Malampaya joint venture partners, particularly operator Shell Philippines Exploration B.V. and government partner Philippine National Oil Co.-Exploration Corp.
“We look forward to working with our joint venture partners, Shell and PNOC-EC, and Malampaya’s key stakeholders, including the Philippine Department of Energy, to ensure that Malampaya continues to play an important role in developing a sustainable clean energy business in the Philippines,” said Uy, chairman and chief executive officer of Udenna.
Uy said his investment in Malampaya is part of his overall plan to develop and promote the use of natural gas in the country.
“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,” he said.
For over two decades, Malampaya has been a major gas source for the country, servicing approximately 30 percent of the national demand for electricity.
Since it began commercial operations in 2001, the Malampaya project has produced natural gas which supplies five power plants in Luzon, the country’s largest island, with a combined capacity of 3,200 megawatts.
The Philippine Competition Commission approved the transaction last January as it would not result in substantial lessening of competition in the industry.
The Malampaya consortium hopes to find several new wells in areas near the Malampaya well which could provide new gas supply for the country for at least 10 years.
The consortium hopes to get an extension of the contract by another 15 years, of which five will be spent to dig and explore new wells.