20th May 2021 12:55
(Alliance News) -Â Oil major Royal Dutch Shell PLC on Thursday said it has agreed to sell its interest in Shell Philippines Exploration BV for up to USD460 million.
Shell Philippines Exploration, or SPEX, holds a 45% operating interest in Service Contract 38, which includes the producing Malampaya gas field in the Philippines. SPEX is being sold to Malampaya Energy XP Pte Ltd, a subsidiary of Udenna Corp.
The other partners in SC38 are UC38 LLC, a subsidiary of SPEX-buyer Udenna, with a 45% stake, and Philippine National Oil Company Exploration Corp with a 10% interest.
The base consideration for the deal is USD380 million, with additional payments of up to USD80 million between 2022 to 2024 contingent on asset performance and commodity prices.
The deal is expected to complete by the end of this year.
"Since it began commercial operations in 2002, Malampaya has supplied a significant portion of the Philippines' energy demand and it will continue powering the country with indigenous gas following a safe transition of the asset and its experienced workforce," said Wael Sawan, Shell's Upstream director. "Today's announcement is consistent with Shell's efforts to shift our Upstream portfolio to one that is focused on nine core positions."
Shell 'A' shares were down 0.4% at 1,374.80 pence in London on Thursday, while 'B' shares were down 0.4% at 1,320.00p.
By Lucy Heming;Â [email protected]
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