Malampaya consortium Oks $180M deal to connect wells
By Lenie Lectura – August 23, 2024
from Business Mirror
THE Malampaya consortium led by Prime Energy Resources Development BV (Prime Energy) said late Thursday it has awarded a contract valued at $180 million to Allseas Nederland (Brasil) B.V. for the installation of new facilities that will connect the new exploration wells to the Malampaya Shallow Water Platform.
The Malampaya gas field off the province of Palawan is the country’s first and only indigenous gas resource. It supplies about 20 percent of Luzon’s electricity needs.
Allseas, a contractor in the offshore energy market, will be installing the pipeline and umbilicals that will connect two new wells to the platform. The wells will be drilled in 2025 and will deliver new gas by 2026.
This new development is part of the consortium’s Malampaya life extension project dubbed “Project Sinagtala” as it progresses well into the project execution phase.
“Project Sinagtala” aims to develop Phase 4 of the Malampaya deep water gas-to-power project, extending the life of the gas field in accordance with the 15-year license extension under Service Contract 38 that was granted to the consortium by President Ferdinand R. Marcos Jr. in May last year.
The Marcos administration, through the Department of Energy (DOE) led by Secretary Raphael PM. Lotilla, has actively promoted the growth of indigenous oil and gas resources as part of the government’s long-term solution for energy security and independence.
“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,” Prime Energy President Donnabel Kuizon Cruz was quoted in a statement as saying.
The other members of the Malampaya consortium are the Philippine National Oil Company-Exploration Corp. (PNOC-EC), UC 38 LLC, and Prime Oil and Gas Inc.
