A consortium led by First Pacific Company Ltd submitted its “final non-binding offer” to acquire the 45% stake of Shell Philippines Exploration BV (SPEX) in Service Contract (SC) 38 or the Malampaya gas-to-power project.

Speaking to reporters on Monday, March 1, tycoon Manny Pangilinan, First Pacific managing director and chief executive officer, said the bid was submitted to Shell on Friday, February 26, at 5:01 pm.

“We’re looking at acquiring the Shell stake. When we say ‘we,’ it is really First Pacific. We have submitted a final non-binding offer to Shell. Let’s see what they’ll say,” Pangilinan said.

Pangilinan-backed Philex Mining Corporation and one or two banks were part of the “group effort that made an offer.”

Philex Mining Corporation owns PXP Energy Corporation, which in turn owns Forum (GSEC 101) Ltd. PXP Energy and Forum operate SC 75 northwest off Palawan and SC 72 in Recto Bank, respectively.

If the acquisition pushes through, it would strengthen the MVP Group’s broader investments in power.

“We made our offer. It’s up to Shell to conclude whether those terms are acceptable to them or not,” said Pangilinan, without divulging much details of the bid.

Dennis Uy’s Udenna Corporation and Ramon Ang’s San Miguel Corporation were earlier reported to be interested in SPEX’s Malampaya stake.

SC 38 is owned by SPEX (45%) and Philippine National Oil Company-Exploration Corporation (10%). The remaining 45% was held by Chevron Malampaya LLC before it sold its stake to Uy’s Malampaya Pte Ltd, a unit of Udenna Corporation.

SC 38 is set to expire in 2024, but the Philippine government has yet to announce whether the license would be extended.

In October 2020, President Rodrigo Duterte lifted the moratorium on oil and gas exploration in the West Philippine Sea in preparation for the depletion of Malampaya. – Rappler.com