NEWS

By Pilar Manuel

Business tycoon Manny Pangilinan has officially offered to buy Shell Philippines Exploration B.V.’s 45% stake in the Malampaya gas facility.

CNN Philippines

“We have submitted a final non-binding offer to Shell,” Pangilinan said, referring to First Pacific Company Ltd., during Meralco’s virtual briefing on Monday. Pangilinan is chief executive officer of the Hong Kong-based investment management and holding company.

The Meralco chairman added that the offer, which was submitted 5:01 p.m. last Friday, was a group effort.

“It’s not just First Pacific. Philex Mining was part of that group that made a joint offer because Philex Mining is part owner of PXP Energy, which owns 70% of Forum [Energy],” Pangilinan said. “One or two other” banks were also part of the group, he added.

Philex Mining told the local bourse Wednesday it is not directly involved in discussions on the acquisition of Shell’s stake, clarifying its only involvement is through its associated company PXP Energy.

The offer “remains subject to the final outcome of the bidding process, further discussions between the parties, and obtaining all applicable regulatory, corporate and other approvals,” the mining company added.

PXP Energy, also led by Pangilinan, confirmed last October their plan to acquire Shell’s stake in the natural gas project. Prior to this, San Miguel Corporation and Petron president Ramon Ang and Phoenix Petroleum owner Dennis Uy also expressed interest in Shell’s stake.

Shell is seeking a buyer for its stake in the reservoir as it hopes to preserve its financial footing.

Uy’s Udenna Corporation already owns 45% of the gas-to-power project after it purchased Chevron’s stake in Malampaya. State-led PNOC Exploration Corporation holds the remaining 10%.

PXP Energy likewise has an operating interest in Service Contract 72, which refers to its project in Recto Bank.

“We hope that SC 72 could get developed as an oil field. And once we start developing, we have to connect to Malampaya because we need our facilities to process the raw gas then pipe it to Batangas,” Pangilinan said. He added Meralco should already get into gas plants.

PXP Energy’s United Kingdom-based subsidiary Forum Energy, meanwhile, bagged SC 75 which pertains to its project in Northwest Palawan.

Energy Secretary Alfonso Cusi earlier said the Malampaya facility is only good until 2027, with its contract with the agency set to lapse in 2024.

Source: CNN Philippines