Udenna will acquire the shares through its subsidiary UC Malampaya Philippines, whilst Chevron will sell its stake through its own subsidiary Chevron Malampaya LLC. Udenna has also stated that it will not be involved in the supply of gas for electricity from the gas field. The deal is still subject to regulatory approvals from the Philippines Competition Commission.
Udenna Corporation founder Dennis Uy told Business Inquirer: “The signing of the share purchase agreement 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.
“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.”
Malampaya gas field
The capacity of the concrete gravity sub-structure (CGS) is 508 million cubic feet of gas and 32,800 barrels of stabilised condensate per day. The gas processed from Malampaya is then transported through a 504km pipeline to the Batangas onshore facility on Luzon Island.
It has been estimated that the gas field provides 20% of the country’s electricity demand.
As well as stakes in oil and gas projects, Udenna Corporation also has assets in food, shipping and logistics and property development.
Its founder Dennis Uy has proposed to list the company on the Philippines Stock Exchange through a share swap with ISM Communications.