Razon-led Prime Infrastructure takes over ownership of Malampaya operator

Prime Infrastructure Capital Inc. (Prime Infra) said it has completed its acquisition of the 45-percent operating stake in the Malampaya deep water gas-to-power project starting November 1.

In a statement on Tuesday, Prime Infra said through one of its subsidiaries, it assumed full ownership and control of Malampaya operator Shell Philippines Exploration B.V. (SPEX).

It said that renaming of SPEX to Prime Energy Resources Development B.V. (Prime Energy) is already in process following the acquisition of SPEX shares.

“With great pride and honor, we welcome the SPEX team to our Prime Infra family of companies. The Malampaya asset begins a new chapter today as we continue to build on the legacy of this world-class installation in helping achieve national energy security and independence,” Prime Infra chairperson Enrique Razon Jr. said.

Prime Infra said it established a team of commercial, change management, and upstream industry experts to facilitate the seamless transition of the asset operations from Shell.

It said that a team of at least 300 SPEX world-class employees joins the Prime Infra group bringing with them “highly specialized skills and technical knowledge” that will continue to operate the deep water gas-to-power project.

The management said it formally welcomed the SPEX team at the Manila office, Onshore Gas Plant, Batangas Supply Base, and Shallow Water Platform via a two-day onboarding activity to be capped with a hybrid town hall on November 2 across all sites.

Meanwhile, Prime Infra said the next urgent step for Prime Energy is to sustain and expand gas production in light of the growing electricity demand.

“As a purpose-driven company, Prime Infra is committed to invest in critical infrastructure that supports the country’s urgent needs. We are excited to be part of the next phase of Malampaya, and to further the potential of SC 38 as we work on securing the license extension,” Prime Infra president and CEO Guillaume Lucci said.

Last October, the Department of Energy (DOE) gave the go-signal for Razon-led Prime Infrastructure Capital Inc. to acquire the 45% interest of Shell Philippines Exploration BV (SPEX) in the Malampaya Service Contract 38.

The DOE said it approved the transaction after a “thorough review,” with the approval conditioned on SPEX remaining as a subsidiary of Prime Infra.

Prime Infrastructure serves as the infrastructure arm of the Razon group, with focus on energy, water, and waste management.—Richa Noriega/LDF, GMA News