Shell Petroleum N.V. has concluded the divestment of its 100% stake in Shell Philippines Exploration B.V (SPEX) to Prime Infrastructure Capital’s subsidiary Malampaya Energy XP (MEXP).

Shell Philippines Exploration has a stake of 45% in Service Contract 38 (SC38), which comprises the Malampaya gas field offshore the Philippines.

The deal was first announced in May 2021. The transaction involves a base consideration of $380m and additional payments of up to $80m, contingent on asset performance and commodity prices between 2022 to 2024.

With the sale, which is effective from 1 November 2022, employees of SPEX will serve under the new ownership.

Shell upstream director Zoe Yujnovich said: “Since operations began in 2002, the Malampaya gas field has supplied an important part of the Philippines’ energy demand through the dedicated work of our partners and staff, past and present.

“This sale supports our strategy to create a resilient and competitive Upstream portfolio”.

The Service Contract 38 consortium includes UC38 , a subsidiary of Udenna , with a 45% stake and PNOC Exploration Corporation holding a 10% interest.

Shell said in a statement: “This deal has no impact on other Shell businesses in the country. The Philippines remains an important country for Shell after over a century of successful operations.”

The Malampaya field’s major components include a shallow water platform and a depletion completion platform, subsea wells and flowlines, a 504km long gas export pipeline, an onshore gas plant, and a pipeline in Batangas City.