Prime Infrastrastructure Capital of ultra bilyonaryo Enrique K. Razon Jr. is now a 45 percent stakeholder in Malampaya deep water gas-to-power project effective today, November 1, 2022.
“The Malampaya asset begins a new chapter today as we continue to build on the legacy of this world-class installation in helping achieve national energy security and independence,” said Razon in a statement. SPEX will be renamed Prime Energy Resources Development B.V. (Prime Energy)
Prime Infra assumed full ownership and control of Shell Philippines Exploration B.V. (SPEX) just three months after announcing its acquisition of the operator and 45-percent owner of the Malampaya gas field from Duterte crony Dennis Uy.
Uy’s $460 million purchase of SPEX had been stalled because minority shareholder Philippine National Oil Company-Exploration Corporation did not give its consent. Uy had previously paid $565 million for the 45 percent stake of Chevron in Malampaya which Razon is also in the process of buying.
Prime Infra will absorb around 300 world-class employees of SPEX, which will be renamed Prime Energy Resources Development B.V. (Prime Energy), to ensure the seamless transition of the asset operations.
Prime Infra welcomed the SPEX team at the Manila office, onshore gas plant, Batangas supply base and shallow water platform via a two-day onboarding activity to be capped with a hybrid town hall on November 2 across all sites.
In October 2022, the Department of Energy (DOE) approved the transfer of shares of SPEX to a Prime Infra subsidiary. Prior to this, consents were also given by the joint venture partners in the Malampaya Service Contract 38 (SC 38) consortium, UC38 LLC and the PNOC Exploration Corporation (PNOC EC).
The next urgent step for Prime Energy is to sustain and expand gas production in light of the growing electricity demand.
Prime Infra President and CEO Guillaume Lucci said the next step for Prime Energy is to secure approval for the extension of Malampaya’s Service Contract 38 (SC 38), granted in 1990, before its expiry in December 2224.
“As a purpose-driven company, Prime Infra is committed to invest in critical infrastructure that supports the country’s urgent needs. We are excited to be part of the next phase of Malampaya, and to further the potential of SC 38,” said Lucci.
Malampaya, which started operations in 2001, produces natural gas to power plants in Batangas City that power up to 20% of Luzon’s total electricity requirements.