Philippines' Udenna says it is buying Chevron's stake in Malampaya gas project

MANILA, Nov 13 (Reuters) - Philippine oil and shipping group
Udenna Corp said on Wednesday it has signed a deal to acquire
the 45% interest of a Chevron CVX.N unit in the country's
Malampaya gas-to-power project, subject to regulatory approvals.
Udenna, which controls fuel retailer Phoenix Petroleum
Philippines Inc PNX.PS and shipping and logistics firm Chelsea
Logistics and Infrastructure Holdings Corp C.PS , said it has
signed a sale and purchase agreement with Chevron Malampaya LLC.
Phoenix, together with Chinese partner CNOOC Gas and Power
and state-owned Philippine National Oil Company (PNOC), is
looking to build a $2 billion liquefied natural gas hub in the
Philippines. The Malampaya project, developed and operated by Shell
Philippines Exploration BV which also has a 45% interest in it,
provides the fuel for power plants with a combined capacity of
more than 3,000 megawatts.
The remaining 10% is held by PNOC's unit, PNOC Exploration
Corp.
"The acquisition of Chevron's interest in the Malampaya gas
field marks an important milestone for Udenna, fitting
strategically with our long-term ambitions of developing a
sustainable clean energy business in the Philippines," Udenna
CEO and Chairman Dennis Uy said in a statement.
Financial details of the acquisition deal were not disclosed
and Chevron did not immediately reply to Reuters' emailed
request for comment.
Udenna disclosed the deal a day after Philippine oil and gas
firm PXP Energy Corp PXP.PS said it had expressed interest to
buy Chevron's 45% interest in the Malampaya project.
PXP also said it had submitted an unsolicited proposal to
the Philippines' Department of Energy (DOE) to develop and
utilise the Malampaya natural gas facilities in the South China
Sea for a planned integrated gas hub venture.
The Malampaya gas field is expected to be depleted within
the next decade and the consortium's contract with the
government will expire in 2024, but Shell wants it extended and
has made a formal request with the DOE.
Malampaya can still produce gas beyond the contract expiry,
a local Shell executive was quoted as saying by local media.