Shell’s Malampaya divestment stalls as political support crumbles

Rodrigo Duterte, the Philippines' president, addresses officials during a vaccine arrival ceremony at Vilamor Airbase in Pasay City, Manila, the Philippines, on Sunday, Feb. 28, 2021. Villafranca/Bloomberg

Shell’s (LSE:RDSA) sale of its 45% share of the Malampaya gas project in the Philippines to Udenna Corporation for $460 million has stalled after the country’s national oil company PNOC blocked the deal amid crumbling political support.

The crux of the problem appears to be that Filipino tycoon Dennis Uy, who controls Udenna and is a close ally of President Rodrigo Duterte, has fallen out of favour as politicians and powerful businessmen jockey for position ahead of presidential elections later this year.

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