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Prime Exploration Pte. Ltd., a subsidiary of Prime Infrastructure Capital Inc. (Prime Infra), recently signed a share purchase agreement acquiring MEXP Holding Pte. Ltd. (MEXP) from a subsidiary of Udenna Corporation.

MEXP previously signed an agreement with Shell Petroleum N. V. (Shell) acquiring Shell Philippines Exploration B. V. (SPEX) from the latter. SPEX owns a 45% participating interest in the Malampaya deep-water gas-to-power project and is the operator of the project’s consortium. The other members of the consortium are UC38 LLC (a subsidiary of Udenna Corporation) and the PNOC Exploration Corporation (PNOC EC) who respectively own a 45% and 10% participating interest in the project.

The change in control of SPEX from Shell to Prime Infra is subject to the consent of PNOC EC and the Department of Energy. Once such consents are given and the transition process for a safe and seamless handover of operations is completed, Prime Infra will assume full ownership and control of SPEX.

The Malampaya project is one of the country’s most important power assets, as it produces natural gas to power plants in Batangas City that account for around 20% of the Philippines’ total electricity requirements. It began operations in 2001, with the consortium’s license for the project set to expire in 2024.

“Prime Infra’s acquisition of MEXP reflects our shared commitment with the national government to help maintain energy security and independence as we transition to a renewable energy-fueled Philippine economy,” said Prime Infra Chairman Enrique K. Razon, Jr.

“We believe that gas is an important transition fuel in the near-term, reducing the need for baseload fossil fuels like coal. Hence, we intend to accelerate investments on the Malampaya gas field to improve the output of existing wells and, if possible, develop new wells in the area once the license extension is secured from the government,” added Razon.

Prime Infra’s investment in the expansion of Malampaya operations will also be critical to provide the necessary infrastructure that would support the development of natural gas in the area, one of the key points defined in the administration’s energy agenda.

Given Prime Infra’s commitment to provide reliable, resilient and sustainable infrastructure, the Malampaya asset is a significant addition to Prime Infra’s growing energy portfolio as it reduces the country’s reliance on importing fuel and helps drive economic productivity and industrial growth.

Prime Infra, Shell and Udenna are currently working together to achieve a smooth transition of SPEX to Prime Infra.

“We look forward to this opportunity to partner with Prime Infrastructure and PNOC EC, as we explore more ways to fulfill our common vision to make Malampaya continue to operate safely and reliably to strongly support our country’s need for indigenous and sustainable energy for many years to come,” said Udenna Corporation Chairman and CEO Dennis Uy.