Shell divests Philippine gas stake

Shell has agreed to sell its stake in Malampaya, the Philippines’ largest productive gas field, as the major continues an aggressive programme of divestments

Shell has signed an agreement to sell all of its Shell Philippines Exploration subsidiary to Philippine conglomerate Udenna Corporation. The subsidiary operates Malampaya and holds a 45pc stake in the Service Contract 38 block, which includes the Malampaya field. Udenna has agreed to pay Shell an initial $380mn, plus additional payments of up to $80mn over 2022-2024, depending on the asset’s performance and commodity prices. Subject to approvals, the deal is expected to be completed by the end of this year. The purchase will raise Udenna’s stake to 90pc, with state-owned Philippine National Oil Company retaining 10pc. $380mn – Initial agreed price, plus up to $80mn in contingency payme