MANILA - Shell Philippines Exploration BV, the upstream unit of energy giant Royal Dutch Shell plc, on Wednesday said it is exploring options to sell its SC 38 Malampaya stake as part of an "ongoing portfolio rationalization."
"Shell would ensure a smooth transition of the asset to a credible buyer who would be well placed to optimize the value from Malampaya," Shell said in a statement.
Malampaya is operated by Shell Philippines Exploration BV, together with two other joint venture partners.
Located 50 kilometers offshore Northwest Palawan, the deep water gas-to-power project began commercial operations in 2001 and supplies natural gas to 5 power plants in Luzon, which together generate over 3,200 megawatts of power.
"The Philippines remains an important country for Shell after over a century of successful operations, and Shell will continue to pursue opportunities where it can leverage its global expertise in line with its strategy," the company said.
Last month, Shell permanently shut its Batangas Tabangao refinery as the COVID-19 pandemic dampened demand.
The oil giant said that decision is seen to secure the “long-term sustainability” of its business and thrive in the new normal and energy transition.
For the second quarter, Pilipinas Shell posted a net loss of P1.2 billion, while first half net loss reached P6.7 billion, it said.
In March, Dennis Uy's Udenna Corp completed its acquisition of Chevron Malampaya which then held a 45-percent interest in the Malampaya gas project.
Uy said Udenna considered "immense potential in natural gas, the fuel of the future."