Chevron Wraps Sale of Malampaya Field Stake
U.S. oil major Chevron has completed the exit from the Shell-operated Malampaya gas project offshore the Philippines with the sale of its 45% non-operating interest in the field to Udenna Corporation. The sale deal was signed in October 2019.
The Malampaya natural gas field lies about 50 miles (80 km) northwest of the Philippine island of Palawan. Net daily production during 2019 averaged 136 million cubic feet of natural gas and 3,000 barrels of condensate.
Produced from fields at water depths of about 2,800 feet (853 m), the gas is transported 314 miles (505 km) through subsea pipelines from an offshore platform to the Batangas onshore natural gas plant on the main island of Luzon. Once treated, the gas is transported via overland pipelines to power plants.
Udenna said this week that the acquisition "enables Udenna to become a joint venture partner in an energy asset of national significance."
"For over two decades, Malampaya has been the cornerstone of the country’s gas industry and continues to service approximately 30% of the national demand for electricity. Since it began commercial operations in 2001, the Malampaya project has produced cleaner-burning natural gas which supplies five power plants in Luzon, the country’s largest island, with a combined capacity of 3,200 megawatts," the company said.
Dennis A. Uy, CEO and Chairman of Udenna: said “We see immense potential in natural gas, the fuel of the future, and we are optimistic and excited to bring its full benefits to Filipinos. Taking a long view, this new milestone moves us closer to Udenna’s vision of being an indispensable partner in nation-building.”
“We look forward to working with our joint venture partners, Shell and PNOC-EC, and Malampaya’s key stakeholders, including the Philippine Department of Energy, to ensure that Malampaya continues to play an important role in developing a sustainable clean energy business in the Philippines,” Uy further stated.