First Gas Flows From New Offshore Platform at Philippines' Malampaya Field

Shell Philippines announced Monday that the Malampaya natural gas field off the coast of Palawan Island will continue to power a third of homes and businesses in the Philippines, thanks to a new offshore platform that is the country’s first to be designed and built in the country.

Malampaya Deep Water Gas-to-Power project joint venture partners -- Shell Philippines Exploration, B.V. (SPEX), Chevron Malampaya LLC (Chevron) and the Philippine National Oil Company-Exploration Corporation (PNOC-EC) -- led a ceremony at the Makati Shangri-La Hotel today to inaugurate the new platform, and mark the start of gas production.

Commenting on this milestone, Philippine Department of Energy Secretary Zenaida Monsada said: “We take great pride in the completion of this complex and challenging project. This is the first offshore platform to be designed and constructed in the Philippines. This is another landmark accomplishment for the upstream petroleum industry in the country.”

The new offshore platform – a Depletion Compression Platform (DCP) -- is adjacent to the existing Malampaya Shallow Water Platform, located some 31 miles (50 kilometers) offshore from Palawan in western Philippines.

Combined with the successful drilling of two new production wells, which were completed in 2013, the new offshore platform will maintain the level of gas production to fulfill commitments under existing gas sales agreements, thus ensuring the steady supply of natural gas to power the Luzon electricity grid.

Today’s event also commemorates the 25th anniversary of Service Contract 38 (SC38), which laid the foundation for the Malampaya Deep Water Gas-to-Power Project. The late President Corazon C. Aquino signed SC 38 on behalf of the Government in December 1990.

“This latest phase in Malampaya is a continuation of the Malampaya Deep Water Gas-to-Power Project’s positive legacy to the Philippines by providing the country a safe, reliable, and cleaner energy resource,” SPEX Managing Director Sebastian Quiniones said. “The project also promotes inclusive growth by elevating the capability of the Filipinos to world-class standards.”


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