- Deal is subject to regulatory approvals
- Uy to work with Razon, govt to meet energy needs
- Announcement confirms Reuters report on Malampaya deal
MANILA (Updated 10:33 a.m.) — 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.
—Reporting by Neil Jerome Morales and Karen Lema; Editing by Ed Davies and Richard Pullin