Razon to acquire controlling stake in Malampaya gas project

June 2, 2022 - 10:01 AM
1744
A file photo of tycoon Enrique Razon. (The STAR/File)
  • Deal is subject to regulatory approvals
  • Uy to work with Razon, govt to meet energy needs
  • Announcement confirms Reuters report on Malampaya deal

 Philippine tycoon Enrique Razon will acquire a controlling stake in the country’s Malampaya gas-to-power project, his company said in a statement on Thursday.

Razon’s Prime Infra Holdings Inc will buy the majority stake from Dennis Uy, a close associate of outgoing Philippines President Rodrigo Duterte. The move confirms a Reuters report earlier this month.

Prime Infra did not disclose the deal’s value or how many shares Razon is buying. Uy, whose business empire expanded rapidly since 2016, acquired a combined 90% share in the Malampaya gas field from Chevron and Shell for roughly $1 billion.

In the same statement, Udenna Chairman Uy said he looked forward to partnering with Razon and Philippine National Oil Company-Exploration Corp (PNOC-EC) to sustain Malampaya’s operations and meet the urgent need for energy security.

The acquisition requires the consent of various parties, including the energy ministry and state-owned PNOC-EC, which owns 10% of Malampaya.

The Malampaya offshore gas field is located in Palawan province, in an area of the South China Sea not claimed by Beijing. It fuels power plants that deliver about a fifth of the Philippines‘ electricity requirements. In December, Uy’s Udenna said Malampaya may operate for several more years beyond its projected 2027 project life.

RELATED: Dennis Uy considering sales of big assets —sources

—Reporting by Neil Jerome Morales and Karen Lema; Editing by Ed Davies and Richard Pullin