Dennis Uy eyes takeover of Malampaya gas-to-power facility

Davao-based businessman Dennis Uy, through the Udenna Group, is looking to take over the Malampaya gas-to-power facility, through an acquisition of the 45% stake held by Shell Philippines Exploration BV (SPEx).

In a statement sent on Monday, the Udenna Group -- which already holds a 45% stake in Malampaya -- said it wanted to fully take over the facility.

"The Udenna Group firmly believes that Malampaya is a high-quality asset, strategic to the future welfare and energy security of the country and welcome our partner PNOC Exploration Corporation to join us in taking over the field on a 100% basis," said Atty. Raymond Zorrilla, spokesperson of the Udenna Group.

Malampaya Philippines Pte. Ltd., a wholly-owned unit of Udenna Corp., in March completed the buyout of the 45% stake held by Chevron Philippines in the consortium.

Following the transaction, 45% of Malampaya remained with Shell Philippines, and the remaining 10% with the Philippine National Oil Company - Exploration Corp.

With the reported exit of Shell, Zorrilla said remaining members of the consortium are the logical choice to acquire its stake, and discover and produce more indigenous resources beyond the terms of the existing service contract.

"We are keen to pursue this vision even with Shell's exit, and that we, together with PNOC-EC, are the most suitable party to assume Shell's interest. We will exercise this right as provided in our joint venture agreement," said Zorrilla.

"Should Shell not consider their existing partners but put forth a decision to sell its stake to another third party, Udenna will rely on its rights as stipulated in the agreement and as a member of the consortium, such as our pre-emptive and consent rights," he added.

The Malampaya gas-to-power facility fuels three gas-fired power plants with a total generating capacity of 2,700 megawatts (MW), providing up to 30% of the power generation needs of Luzon.

Connected to onshore gas plants in Batangas, the Malampaya offshore facility in Northern Palawan was inaugurated in 2001, with estimates showing that its gas reserves are sufficient until 2022 to 2024.

Aside from oil, gas, and retail, Uy's Udenna Group is also involved in shipping and logistics; education; food; gaming and tourism; property development and management; and infrastructure development. -NB, GMA News