The Malampaya consortium led by Prime Energy Resources Development BV is on track towards extending the life of the Malampaya gas field with the award of a USD180 million contract to Allseas Nederland (Brasil) B.V.
The contract requires the Switzerland-headquartered Allseas to install the pipeline and the umbilicals needed to connect two new wells to the Malampaya shallow water platform.
Successfully completing the project will help extend Malampaya’s ability to supply the main Luzon island the electricity it requires to power industries and households. The Malampaya gas field supplies 20 percent of the main Luzon island’s electricity requirement.
According to documents, the wells are scheduled for drilling in 2025 and deliver new gas by 2026 under the Malampaya life extension program dubbed Project Sinagtala.
Project Sinagtala implements phase 4 of the Malampaya deep water gas-to-power project that extends the life of the gas field consistent with the 15-year license extension granted to the consortium in May last year.
The project is expected to increase domestic gas supply and ensure consumers benefit from a stable and reliable energy accessible to existing and new gas power plants.
According to the Malampaya Consortium, the focus of the execution phase through the end of year is to finalize the well design to be drill-ready and ensure it can withstand all load stress scenarios applicable in the deepwater subsea canyon crossing of the Camago-Malampaya field.
“As a service contractor to the government, we are committed to maintaining high standards of production and exploration that have defined the Malampaya project since its inception in 2001. By increasing our gas supply, we extend Malampaya’s life and sustain our own… Filipino gas, always available and at a stable and predictable price,” said Donnabel Kuizon Cruz, Prime Energy president and chief executive officer.
“We are fully prepared to proceed with Project Sinagtala as we have, over the past year, built the required expertise to successfully deliver the wells and install the required subsea infrastructure,” Cruz added.
Prior to this, the Malampaya consortium also awarded a USD69.9 million contract last March to offshore drilling contractor Noble for the use of its deepwater drillship Noble Viking to drill two deepwater development wells in the Camago and Malampaya East fields, as well as a third exploration well, Bagong Pagasa, approximately 15 kilometers north of Malampaya.
The Malampaya gas field off the province of Palawan is the country’s first and only indigenous gas resource supplying about 20 percent of Luzon’s electricity needs.
