Shell Petroleum has signed an agreement with Malampaya Energy XP, a subsidiary of Udenna Corp, for selling its 100 percent stake in Shell Philippines Exploration (SPEX), for $460 million.
SPEX holds a 45 percent operating interest in Service Contract 38 (SC38), which includes the producing Malampaya gas field. The base consideration for the sale is US$380 million, with additional payments of up to US$80 million between 2022 to 2024 contingent on asset performance and commodity prices.
Wael Sawan, Shell’s Upstream Director, said: “Today’s announcement is consistent with Shell’s efforts to shift our Upstream portfolio to one that is focused on nine core positions.”
This deal has no impact on other Shell businesses in country. The Philippines remains an important country for Shell after over a century of successful operations.