Enrique Razon buys Malampaya operator from Dennis Uy's Udenna

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Metro Manila (CNN Philippines, July 29)— Enrique Razon has acquired a firm under Dennis Uy's Udenna Corporation which runs the Malampaya field-to-gas-project.

Razon's Prime Infrastructure Capital (Prime Infra) on Friday confirmed in a statement that its subsidiary Prime Exploration Pte. Ltd. inked a share purchase agreement with Udenna subsidiary MEXP Holding Pte. Ltd.

Neither Prime Infra nor Udenna disclosed the amount involved in the transaction.

MEXP earlier acquired Shell Philippines Exploration B.V. (SPEX), which holds a 45% stake in the natural gas facility, from Shell Petroleum N.V.

Uy previously held a 90% stake in Malampaya after separately acquiring the shares of Chevron and Shell. The remaining 10% is held by state-run PNOC Exploration Corp. (PNOC-EC).

Prime Infra stressed the transaction, which will transfer control of SPEX to it, is still subject to the PNOC-EC's and Department of Energy's consent.

"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 Razon, Prime Infra's chairman.

Razon added they intend to ramp up investments in the gas field to improve output of existing wells and possibly develop new ones, assuming the Malampaya consortium's license for the project is extended beyond expiry year 2024.

"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," Uy was quoted as saying in the statement.

Razon first announced last month that he's set to acquire a controlling stake in Malampaya.