The Philippine Competition Commission approved the acquisition by Udenna Corp. of the entire shareholdings of Chevron Malampaya LLC, a wholly-owned subsidiary of Chevron Philippines Ltd., in the Malampaya natural gas project.
“Upon the review of the findings and recommendation of the Mergers and Acquisitions Office and the parties’ submissions, the commission finds that the acquisition by UC Malampaya of shares in Chevron Malampaya [the transaction] will not likely result in substantial lessening of competition,” PCC said in a decision.
PCC said there are “no horizontal or vertical relationships between the parties.”
“Accordingly, the commission resolves to take no further action with respect to the proposed transaction between UC Malampaya and Chevron Malampaya,” PCC said.
UC Malampaya Philippines Pte. Ltd., a wholly-owned subsidiary of Udenna owned by businessman Dennis Uy, signed the SPA on Oct. 25 to acquire 100 percent of the shares of Chevron Malampaya, which owns a 45-percent interest in Service Contract 38, or the $4.5-billion Malampaya gas field.
“At Udenna, we believe in the benefit of promoting natural gas as an essential fuel to support the country’s growing energy needs and economic growth. The acquisition of Chevron’s interest in the Malampaya gas field marks an important milestone for Udenna, fitting strategically with our long-term ambitions of developing a sustainable clean energy business in the Philippines,” Uy, Udenna chief executive and chairman, said in an earlier statement.
Other Malampaya consortium members are Shell Philippines Exploration BV with a 45-percent stake and state-run PNOC Exploration Corp. with 10 percent.
“It’s a private transaction and as long as it meets the terms and standards in the concession agreement, the interest of the country is protected, it’s fine with us,” Energy Secretary Alfonso Cusi said earlier when asked about the transaction.
The Malampaya gas field, located in Palawan, is an energy asset of significant national importance, being the Philippines’ largest and only commercially producing gas field.
Malampaya has been the cornerstone of the country’s gas industry and continues to service approximately 20 percent of the national demand for electricity.
Udenna said it carefully assessed and established a plan for the future development of the Malampaya field and its surrounding fields, to ensure the future of Philippines energy security and the benefit of joint venture partners.
“We look forward to working with the joint venture partners, Shell and PNOC, and Malampaya’s key stakeholders, including the Philippines Department of Energy, to ensure that Malampaya continues to play an important role in sustainable nation building in the Philippines,” the company said.
Udenna’s business includes distribution and retail of finished petroleum products, shipping and logistics.
Udenna expanded and diversified its portfolio to include property development, education, food, gaming, tourism, and infrastructure. It employs more than 9,000 personnel.