Prime Energy awards $69.9-m contract for new Malampaya drilling
By Alena Mae S. Flores – March 15, 2024, 9:15 pm
from manilastandard.net
Prime Energy Resources Development B.V. (Prime Energy) said Friday it awarded a major contract for the Malampaya phase IV project to Noble, one of the world’s largest offshore drilling contractors.
The $69.9-million contract is for the use of Noble’s deepwater drillship “Noble Viking” to drill two deepwater development wells in the Camago and Malampaya east fields, and a third exploration well, Bagong Pagasa, around 15 kilometers north of Malampaya.
“We are very proud of the milestones that the hard-working team of Filipinos in Prime Energy achieve month on month to ensure that we are on track for the planned drilling in 2025,” Prime Energy managing director and general manager Donnabel Kuizon Cruz said.
The Noble Viking drilling rig is considered state-of-the-art in its deepwater category, with dual derricks and integrated managed pressure drilling (MPD) systems on board.
The rig contract comes on the back of two earlier awarded contracts for the supply of long lead materials; offshore casing and tubular goods (OCTG) and wellhead equipment, with a combined value of $45 million.
“Malampaya gas has served us for more than 20 years. We are committed to continue providing reliable flow and supply of indigenous gas to our customers, protecting Filipino consumers from volatile forces that affect oil and gas prices,“ Cruz said.
Noble senior vice president for marketing and contracts Blake Denton said the company is pleased to join Prime Energy “in this important drilling campaign which will ultimately contribute to improved energy security for the Philippines.”
Service Contract No. 38 (SC 38), which governs the Malampaya project, was extended for another 15 years until February 2039. The consortium remitted more than $13.5 billion from 2001 to end of 2023.
Prime Energy and its joint venture partners (UC38 LLC, PNOC Exploration Corp., Prime Oil and Gas, Inc.) operate the Malampaya project.
Prime Energy, a subsidiary of Prime Infrastructure Capital Inc., is a natural gas exploration and development company led by businessman Enrique Razon Jr.
It owns a 40-percent participating interest and is the operator of SC 38, or the Malampaya deep water gas-to-power project, supplying about 20 percent of Luzon’s electricity requirements.
