By Jaime Llinares Taboada

 

Royal Dutch Shell PLC said Thursday it has agreed to sell its 45% stake in the Malampaya gas field offshore Philippines to Udenna Corp. for up to $460 million.

The Anglo-Dutch energy major said it has signed an agreement to sell Shell Philippines Exploration B.V., which holds the 45% interest in the producing Malampaya field.

Shell will be paid a base consideration of $380 million, plus up to $80 million between 2022 and 2024 subject to asset performance and commodity prices.

The sale is expected to be completed by the end of 2021.

"Today's announcement is consistent with Shell's efforts to shift our Upstream portfolio to one that is focused on nine core positions," Shell's Upstream director Wael Sawan said.

Udenna --a holding company for the interests of Philippines businessman Dennis Uy-- already owns a 45% interest in the Malampaya license, with the remaining 10% owned by the Philippine National Oil Company Exploration Corp.

Shares in Shell at 0935 GMT were down 14.8 pence, or 1.1%, at 1,310.0 pence.

 

Write to Jaime Llinares Taboada at jaime.llinares@wsj.com; @JaimeLlinaresT

 

(END) Dow Jones Newswires

May 20, 2021 05:56 ET (09:56 GMT)

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