Dennis Uy’s Udenna buys out Chevron from Malampaya consortium

Dennis Uy’s Udenna Corp. has bought all the shares of Chevron Malampaya LLC in the gas-to-power business equivalent to a 45% stake in the Malampaya gas field in offshore Palawan.

Udenna signed on October 25 a sale and purchase agreement to acquire 100% of the shares of Chevron Malampaya, which holds a 45% non-operated interest in Malampaya.

“At Udenna, we believe in the benefit of promoting natural gas as an essential fuel to support the country’s growing energy needs and economic growth,” said Udenna chairman and CEO Dennis Uy.

“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,” he added.

Udenna did not disclose the transaction details other than saying that the deal remains subject to regulatory approvals, including the Philippine Competition Commission (PCC).

Aside from Chevron, the Malampaya consortium counts as members Shell Philippines Exploration BV (SPEx), and the Philippine National Oil Company – Exploration Corp. as members.

“We look forward to working with the joint venture partners, Shell and PNOC, and Malampaya’s key stakeholders, including the Philippines Department of Energy, to ensure that Malampaya continues to play an important role in sustainable nation building in the Philippines,” Udenna said.

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.

Estimates showed its gas reserves are sufficient until 2022 to 2024.

Earlier this week, Udenna acquired the Wendy’s brand in the Philippines through subsidiary Eight-8-Ate Holdings Inc. —Jon Viktor Cabuenas/VDS, GMA News