Philippines' Udenna eyes Shell's Malampaya gas stake, seeks PNOC tie-up

MANILA, Sept 28 (Reuters) - Philippine oil and shipping
group Udenna Corp on Monday expressed interest in acquiring
Royal Dutch Shell PLC's RDSa.L 45% stake in the Malampaya
gas-to-power project, in partnership with state-owned Philippine
National Oil Company (PNOC).
Shell is looking to divest from the Malampaya project in the
Philippines as it seeks to overhaul its business. "We, together with PNOC-EC, are the most suitable party to
assume Shell's interest," Udenna spokesman Raymond Zorilla said,
referring to PNOC's exploration unit.
PNOC Exploration Corp has a 10% interest in the Malampaya
project.
Energy Secretary and PNOC Chairman Alfonso Cusi said PNOC
will study the Udenna tie-up proposal.
Unlisted Udenna, owned by ethnic Chinese tycoon Dennis Uy
who became prominent in the business scene after President
Rodrigo Duterte was elected in 2016, has already acquired
Chevron's CVX.N 45% interest in the Malampaya project.
"The Udenna Group firmly believes that Malampaya is a
high-quality asset, strategic to the future welfare and energy
security of the country," Zorilla said in a statement.
Philippine conglomerate San Miguel Corp SMC.PS , which
operates a 1,200-megawatt power plant running on Malampaya gas,
is also keen to acquire Shell's stake. Malampaya's natural gas field in western Philippine waters,
discovered and operated by Shell since 1991, supplies fuel to
four power plants that deliver about a fifth of the country's
electricity requirements.
Malampaya is projected to run dry by 2027, and the
Philippines is looking at importing liquefied natural gas as a
replacement.
Udenna and PNOC-EC "are free of any conflicts of interest
associated with ownership of downstream gas and electricity
businesses", Zorilla said, adding that Udenna also has
pre-emptive and consent rights over the stake sale.