Power

Dennis Uy to exercise right of first refusal to buy Shell’s Malampaya stake

The holding firm of bilyonaryo Dennis Uy will claim its right of first refusal on the sale of Shell Philippines Exploration B.V.’s 45% stake in the Malampaya gas-to-power project.

Shell is considering divesting from Malampaya, one of the country’s biggest sources of electricity as it refocuses on renewable energy and other power markets.

Udenna Group spokesperson Raymond Zorrilla said the company, together with fellow consortium member PNOC Exploration Corp., would exercise its contractual rights under Service Contract 38 to ensure the ongoing reliable and safe operations of the Malampaya.

Udenna holds 45% interest in the project after buying out American energy firm Chevron’s stake last year PNOC-EC, on the other hand, holds 10%.

Zorrilla said complicated issues might arise in case Shell decides to sell its stake to a party outside the consortium. He said the remaining consortium members were the logical choice to purchase Shell’s stake to ensure the continued employment of workers.

“Should Shell not consider their existing partners, but put forth a decision to sell its stake to another third party, Udenna will rely on its rights as stipulated in the agreement and as a member of the consortium, such as our pre-emptive and consent rights,” Zorilla said.

“The Udenna Group firmly believes that Malampaya is a high-quality asset, strategic to the future welfare and energy security of the country and welcome our partner PNOC Exploration Corp. to join us in taking over the field on a 100-percent basis,” Zorrilla said.

“We are keen to pursue this vision even with Shell’s exit, and that we, together with PNOC-EC, are the most suitable party to assume Shell’s interest. We will exercise this right as provided in our joint venture agreement,” he added.

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