The Department of Energy (DOE) has completed the review of the sale from Shell to Prime Infrastructure Capital of Shell's 45 percent interest in the Malampaya Service Contract 38.

In a statement, the DOE has approved it after a thorough review in accordance with Presidential Decrees 87 and Department Circular No. DC2007-04-0003 for the transfer of rights and obligations in petroleum service contracts.

As a result of the transactions, Shell Philippines Exploration BV (SPEX) will become a wholly owned subsidiary of Prime Infra. Prime Infra was found to be technically, financially and legally qualified as a transferee and as successor to Shell as operator of the Malampaya natural gas project.

SPEX, as a Prime infra subsidiary, will continue to be technically competent and financially capable to operate the Malampaya Service Contract 38.

The DOE's approval is conditioned on SPEX remaining to be subsidiary of Prime Infra, and the continuing validity of Prime Infra's commitments and undertakings to the DOE in respect of SPEX's obligations as operator of Malampaya Service Contract 38. DOE