Razon’s Prime Infra Holdings Inc will buy the majority stake in Udenna Corp, controlled by Dennis Uy, a close associate of outgoing Philippine President Rodrigo Duterte. The move confirms a Reuters report released earlier this month.
Prime Infra did not disclose the value of the transaction or the number of shares purchased by Razon. Uy, whose business empire has grown rapidly since 2016, acquired a combined 90% stake in the Malampaya gas field from Chevron and Shell for around $1 billion.
In the same statement, the chairman of Udenna Uy said he looked forward to partnering with Razon and Philippine National Oil Company-Exploration Corp (PNOC-EC) to support Malampaya operations and address the urgent need for energy security. .
The acquisition requires the consent of various parties, including the energy ministry and the state company PNOC-EC, which owns 10% of Malampaya.
The Malampaya offshore gas field is located in the province of Palawan, in an area of the South China Sea not claimed by Beijing. It powers power plants that supply about one-fifth of the Philippines’ electricity needs. In December, Uy’s Udenna said Malampaya could operate for several more years beyond the project’s projected life of 2027. (Reporting by Neil Jerome Morales and Karen Lema; editing by Ed Davies and Richard Pullin)