Philippines’ Malampaya Gas Project Can be Extended for Several Years -Udenna President
The life of the Philippines’ Malampaya natural gas field, which had been projected by the government to run dry by 2027, can be extended for several more years, the president of Udenna Corporation, which now controls the project, said on the 6th December.
“We are very confident we can prolong this project even further. Certainly, there’s a lot of
years to come that the well can still be very productive,” Udenna President Marty Escalona said in interview with ANC news channel.
Unlisted Udenna acquired the 45% stake of a Chevron unit in the offshore gas field in late 2019 and another 45% from Shell early this year.
The remaining 10% interest in the Malampaya consortium is still held by PNOC Exploration Corporation, a unit of the state-owned Philippine National Oil Company.
The Malampaya gas project, which began commercial operations in 2001, fuels power plants which deliver about a fifth of the south-east Asian country’s electricity requirements.
While Mr Escalona declined to specify how many more years Malampaya can be operated to continue producing gas, he said a technical study for further drilling was in place and that the technical staff from Chevron and Shell for Malampaya’s operations has been retained.
“The technical expertise is there,” he said, responding to a challenge from senators for Udenna to show its technical capability to operate Malampaya.
“The intention is to be able to develop this well further, to maximise the reserves which are there, and continue the drilling process that will enable Malampaya to survive in the years to come,” he said.
A Senate inquiry had been launched into questions over Udenna’s technical and financial ability to operate the project and the soundness of the Department of Energy’s financial evaluation of the buyer.
Both Udenna and the DOE have defended the Malampaya deals.
Source: Pipeline & Gas Journal