New Malampaya wells on track to deliver gas by June

Malampaya gas platform (Photo courtesy of Sembcorp Marine)

MANILA — The new Malampaya wells are on track to start commercial operations by midyear.

“We will have the platform operating or the start of the opening of the compressor by the middle of the year,” said Shell Philippines Exploration Corporation (SPEX) Managing Director Sebastian Quiniones Friday at the Malampaya Phase 2 and 3 briefing at Makati Shangri-La.

Quiniones said the platform still has to undergo some technical works like the ballasting of the legs of the platform and the welding of the pipes.

The new platform was installed during the Malampaya shutdown from March 15 to April 14, with the next shutdown scheduled for 2020.

The USD 1-billion platform will increase Malampaya’s production wells to seven.

Quiniones said the new platform will allow the consortium to provide the supply requirements of the three Luzon-based natural gas plants, namely Ilijan, Sta. Rita and San Lorenzo.

Quiniones noted the success of the project is a Filipino achievement since the platform was assembled in the country by a majority of Filipino engineers, adding it had to pass through the local permitting processes having been installed in Subic.

He disclosed Shell is “hoping to find additional gas in the area”.

Quiniones said Malampaya has earned less due to the oil price crash, however, he did not disclose Shell’s earnings.

He stressed the national government has earned PHP8.5 billion in 2014.

Quiniones said SPEX has not yet heard from the Department of Energy (DOE) regarding its letter for the extension of its service contract operatorship.