Malampaya Consortium Members will ensure continued safe reliable operations

Sep 28, 2020

Following the recent disclosure of Shell to divest its 45% interest in SC38 the Malampaya deep water gas-to-power project as part of its portfolio rationalization efforts, the Udenna Group expressed interest to work together with its other partner (PNOC Exploration Corporation) to ensure the ongoing reliable and safe operations of the asset.  Udenna Corporation has a 45% interest in SC38, and PNOC-EC has 10%.

Udenna Group spokesperson Atty. Raymond Zorrilla said, “The Udenna Group firmly believes that Malampaya is a high-quality asset, strategic to the future welfare and energy security of the country and welcome our partner PNOC Exploration Corporation to join us in taking over the field on a 100% basis.” 

He further mentioned that the transfer of Shell’s interest in Malampaya needs to be resolved as soon as possible, with the remaining consortium members as the logical choice to acquire the Shell stake in order to ensure continued employment and certainty to the local workforce and as importantly to customers and stakeholders who rely on Malampaya’s continued safe and reliable operations in a manner which minimizes disruption.

“We are fortunate that the Malampaya workforce composed of Filipinos have had the benefit of years of training by Shell and are in fact the lifeblood of the project; and it is the remaining Consortium members’ responsibility to ensure that they remain secure in the knowledge that their service to the country shall continue. The Malampaya facilities are run by Filipino men and women to produce energy safely and reliably to keep the lights on for every Filipino.” added Atty. Zorrilla.

Atty. Zorrilla added that Udenna was also privileged to have been able to work with Shell and PNOC EC to forge a vision to discover and produce more indigenous resources beyond the term of the existing service contract. “We are keen to pursue this vision even with Shell’s exit, and that we, together with PNOC-EC, are the most suitable party to assume Shell’s interest. We will exercise this right as provided in our joint venture agreement,” stressed Atty. Zorrilla.

The spokesperson also mentioned that the existing partners are free of any conflicts of interest associated with ownership of downstream gas and electricity businesses and stressed on the importance to have Malampaya continue to operate independently for the benefit of all Filipinos.

In addition, he disclosed that there are complicated issues which a potential new consortium member needs to evaluate which would take time and it may be difficult for anyone other than the existing partners to assess the outcome of these matters in a timely manner.

“Should Shell not consider their existing partners but put forth a decision to sell its stake to another third party, Udenna will rely on its rights as stipulated in the agreement and as a member of the consortium, such as our pre-emptive and consent rights,” ended Zorrilla.

The Udenna Group firmly believes that the exit of Shell from the Malampaya gas field will in no way impact operations. It has further expressed its trust and faith in the Filipino operating team which would continue operating the asset post any sale by Shell of their interest.



For almost two decades, Udenna has been hard at work to be the indispensable partner in nation-building, driven by the Filipino passion to improve and succeed.

Udenna’s business includes distribution and retail of finished petroleum products, as well as shipping and logistics. Udenna has, in the past few years, expanded and diversified its portfolio to include property development, education, food, gaming and tourism, infrastructure, and telecommunications.

Udenna employs over 9,000 personnel and is expected to create thousands more jobs for Filipinos over the coming years.

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