Shell has stuck a deal to sell its 45% operating interest in the Malampaya gas field offshore Philippines for up to $460 million.
The buyer is Malampaya Energy, a subsidiary of Udenna Corporation.
It has swooped for Shell Philippines Exploration (SPEX), a subsidiary of the British-Dutch giant, which holds 45% of Service Contract 38, which includes Malampaya.
The deal is expected to go through by the end of this year.
Wael Sawan, Shell’s upstream director, said: “Since it began commercial operations in 2002, Malampaya has supplied a significant portion of the Philippines’ energy demand and it will continue powering the country with indigenous gas following a safe transition of the asset and its experienced workforce.
“Today’s announcement is consistent with Shell’s efforts to shift our Upstream portfolio to one that is focused on nine core positions.”
Shell added that the deal had no impact on other Shell businesses in country.
It stressed the Philippines remained an important country for Shell after over a century of operations.
SPEX received its license to operate in the Philippines in 1991.
Malampaya began its commercial operations in 2002.
The other partners in SC38 are UC38, a subsidiary of Udenna Corporation (45%), and Philippine National Oil Company Exploration Corporation (10%).
