Razon’s plan was first reported by Reuters in May, when it revealed that Uy, whose business empire has expanded rapidly under Duterte, intended to sell businesses value a complete of several billion dollars, including the Malampaya gas field, to repay debts. Uy acquired a combined 90% interest within the Malampaya gas field from Chevron and Shell for about $1 billion.
Marcos says he’ll use a “strong voice” to demand the Philippines’ rights to the South China Sea
Marcos says he’ll use a “strong voice” to demand the Philippines’ rights to the South China Sea
Prime Infra didn’t disclose what number of shares it was purchasing. The deal have to be approved by the Philippine Department of Energy (DOE) and state-owned Philippine National Oil Co-Exploration Corp (PNOC-EC), which owns 10 percent of Malampaya. Both agencies didn’t reply to requests for comment.
Udenna declined to supply more details in regards to the deal, but in the identical statement, Uy said he looked forward to working with Razon to take care of Malampaya’s operations and address the urgent need for energy security.
The analyst and banker say the deal is helpful to each Razon and Uy. “In an environment of rising interest rates, debt reduction is a must for Uy, hence the asset sale,” Carlos Temporal, a research analyst at AP Securities in Manila, told Reuters.
Temporal said the controlling interest would give Razon control of the Malampaya processing plant and pipeline, increasing the profitability of its oil and gas exploration franchise in Reed Bank, which the Department of Energy says holds larger natural gas reserves than Malampaya.
The Malampaya offshore gas field is positioned in Palawan province, within the South China Sea, to which Beijing has no claims. It powers power plants that meet 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 2027 lifespan.
Razon, whose net value is $6.7 billion based on Forbes, is “an authority in thriving in highly regulated corporations,” a banker who was not authorized to talk to the media told Reuters.
The 62-year-old’s principal holdings include casino and resort group Bloomberry, global port operator International Container Terminal Services and utility company Manila Water.
