Udenna acquires Chevron’s Malampaya stake

MANILA, Phillipines — Dennis Uy continues to expand his growing business empire as his holding firm acquired  the 45 percent stake of Chevron Philippines in the $4.5-billion Malampaya deep water-gas-to-power project in offshore Palawan.

Udenna announced the landmark deal yesterday, confirming The Star’s report Monday.

UC Malampaya Philippines Pte Ltd., a wholly owned subsidiary of Udenna, has “signed a sale and purchase agreement  to acquire 100 percent of the shares of Chevron Malampaya LLC (CMLLC), a wholly-owned subsidiary of Chevron Philippines Ltd., which holds Chevron’s entire 45 percent non-operated interest in the Malampaya gas field in the Philippines.”

The signing of the agreement marks an important milestone in the bilateral discussions between Chevron and Udenna over the past 12 months, and demonstrates the close collaboration in achieving a positive outcome for all parties involved, Udenna said.

The Malampaya project is developed and operated by Shell Philippines Exploration BV with a 45-percent stake on behalf of joint-venture partners Chevron which also has  a 45 percent stake and PNOC-EC (Philippine National Oil Co.-Exploration Corp.), which holds the remaining 10 percent.

Uy,  chief executive officer and chairman of Udenna said his group believes 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,” Uy said.

The Malampaya gas field, located in Palawan, is the 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 percent of the national demand for electricity.

Uy said the company looks 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.”

He told The STAR on Sunday that his investment in Malampaya would not be in conflict with his plan to partner with China National Offshore Oil Corp. to put up an LNG terminal in Batangas.

Phoenix announced in January that Tanglawan Philippine LNG Inc., its joint venture firm with CNOOC, would build an LNG terminal in Batangas with a capacity of 2.2 metric tons per annum.

Udenna recently acquired Wendy’s Philippines. Its other businesses include, education, food, gaming, tourism, and infrastructure.