Udenna Corporation Acquires Chevron’s 45% Interest in Malampaya

Source Company Press Release
Company Udenna Corporation, Chevron Corporation
Tags Country: Philippines, M&A: Asset Deal, Deals, Upstream: Upstream News
Date November 13, 2019

Udenna Corporation (“Udenna”) is pleased to announce that on 25 October 2019, UC Malampaya Philippines Pte Ltd (a wholly owned subsidiary of Udenna), has signed a Sale and Purchase Agreement (“SPA”) to acquire 100% of the shares of Chevron Malampaya LLC (“CMLLC”), a wholly-owned subsidiary of Chevron Philippines, Ltd. (“Chevron”), which holds Chevron’s entire 45% non-operated interest in the Malampaya gas field in the Philippines (“Malampaya”, or the “Asset”). The signing of the SPA marks an important milestone in the bilateral discussions between Chevron and Udenna over the past 12 months, and demonstrates our close collaboration in achieving a positive outcome for all parties involved.  

Malampaya is operated by Shell Philippines Exploration BV (“Shell”), with the third joint-venture partner being the Philippines National Oil Company (“PNOC”).

The Malampaya gas field, located in Palawan, is an energy asset of significant national importance, being Philippines’ largest and only commercially producing gas field. For over two decades, Malampaya has been the cornerstone of the country’s gas industry and continues to service approximately 20% of the national demand for electricity. The strategic nature of the Asset underpins Udenna’s investment in Malampaya. We have carefully assessed and established a plan for the future development of the Malampaya field and its surrounding fields,

to ensure the future of Philippines energy security, as well as the benefit of our joint venture partners.

Dennis A. Uy, CEO and Chairman of Udenna said “at Udenna, we believe in the benefit of promoting natural gas as an essential fuel to support the country’s growing energy needs and economic growth. The acquisition of Chevron’s interest in the Malampaya gas field marks an important milestone for Udenna, fitting strategically with our long-term ambitions of developing a sustainable clean energy business in the Philippines”.

Transaction completion remains subject to regulatory approvals, including from the Philippines Competition Commission. Udenna is not a participant in i) any other upstream fields nor ii) in any links of the gas-to-power value chain. As a result, Udenna is free of any conflicts of interest with regards to this acquisition. We look forward to working with the joint venture partners, Shell and PNOC, and Malampaya’s key stakeholders, including the Philippines Department of Energy, to ensure that Malampaya continues to play an important role in sustainable nation building in the Philippines.

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