Shell Philippines Exploration B.V. is contemplating the divestment of its 45% stake in the Malampaya gas-to-power project in Palawan which supplies up to 40% of the electricity needs of Luzon.
In a statement, SPEX said the sale is part of an “ongoing portfolio rationalization to simplify and increase the resilience of its business.”
SPEX said it would “ensure a smooth transition of the asset to a credible buyer who would be well placed to optimise the value from Malampaya.”
Aside from SPEX, other shareholders of Malampaya are businessman Dennis Uy’s holding company Udenna Corp., which owns a 45% stake and the state-run Philippine National Oil Company-Exploration Corp., which holds the remaining 10%.
SPEX’s former partner, American energy giant Chevron sold its 45% interest in the gas field to Udenna last March.
Malampaya is the second biggest source of electric power in Luzon with combined installed capacity of 3,200 megawatts, accounting for 21 percent of the country’s total demand.
The divestment follows Shell’s suspension of its refining operations in the country after 58 long years due to the impact of Covid-19 on its business.