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Malampaya begins gas production from new offshore platform

The Malampaya natural gas field 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 joint venture partners press the start button to officially inaugurate the new Depletion Compression Platform.

Malampaya joint venture partners press the start button to officially inaugurate the new Depletion Compression Platform. In photo are (L-R): PNOC-EC President Pedro Aquino, Chevron Malampaya LLC Managing Director Sabino Santos (partly hidden), PNOC-EC Chairman and CEO Gemiliano Lopez, Chevron Indo-Asia Business Unit Managing Director Charles Taylor, Department of Energy Secretary Zenaida Monsada, SPEX Managing Director Sebastian Quiniones, Malampaya Phase 2/3 Project Manager Antoine Bliek, Royal Dutch Shell Chief Financial Officer Simon Henry, Shell companies in the Philippines Country Chairman Edgar Chua and Shell General Manager – East Operated Projects Simon Ong.

Malampaya Gas Export platform

The newly inaugurated DCP (left) is linked to the existing Malampaya Shallow Water Platform (right) and will maintain the level of gas production to continue supplying about a third of the Philippines’ power requirements.

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 self-installing technology of the Malampaya DCP enabled the platform to be installed without the need for large specialized installation vessels.

The self-installing technology of the Malampaya DCP enabled the platform to be installed without the need for large specialized installation vessels.

The new offshore platform – a Depletion Compression Platform (DCP) - is adjacent to the existing Malampaya Shallow Water Platform, located some 50km 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.

Built by over 1,400 Filipino workers, the Malampaya Depletion Compression Platform is the first offshore platform to be fully designed and constructed in the Philippines.

Built by over 1,400 Filipino workers, the Malampaya Depletion Compression Platform is the first offshore platform to be fully designed and constructed in the Philippines.

“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.”

A team of more than 1,400 Filipino workers took about two years to build the platform at the Keppel Shipyard in Subic, Zambales. Fabrication was completed with an impressive safety record of 11.8 million safe man hours.

The self-installing technology of the platform was a first of its kind for operator Shell and enabled the platform to be installed without the need for large specialized installation vessels.  The platform was built to float and was towed from Subic to the Malampaya location, offshore Palawan.  The inbuilt jacking system enabled the 80-metre legs to be jacked down and lift the platform from the water into its final position. Both the existing Shallow Water Platform and the new Depletion Compression Platform are designed to withstand the typhoons and earthquakes which the Philippines experiences.

“Malampaya is a symbol of the country’s continuous journey towards energy self-sufficiency. The commissioning and startup of its latest phase is a testament to what the Filipino workforce can achieve to fuel the country’s growth and progress,” Quiniones added. 

About Malampaya:

The Malampaya Depletion Compression Platform was built to float and was towed from shipyard in Subic to the Malampaya location, offshore Palawan.

The Malampaya Depletion Compression Platform was built to float and was towed from shipyard in Subic to the Malampaya location, offshore Palawan.

  • The Malampaya Deep Water Gas-To-Power Project is one of the greatest industrial undertakings in the history of the Philippines. Acknowledged as one of the best examples of a highly successful public-private partnership, the project is spearheaded by the Department of Energy and developed and operated by SPEX, on behalf of joint venture partners Chevron Malampaya LLC and the Philippine National Oil Company-Exploration Corporation.
  • Malampaya fuels three natural gas-fired power stations with a total generating capacity of 2,700 megawatts to provide 30% of the country’s energy needs.
  • The construction of the new Malampaya platform generated more than a thousand direct jobs as well as more business for local companies supporting the project. Workers tapped for the construction underwent mandatory training to elevate their competencies to meet world-class standards. The Malampaya Health Safety and Environment Training Center has so far upgraded the skills and technical knowhow of more than 6,000 Filipino workers to international standards recognized by the Offshore Petroleum Industry Training Organisation.
  • This latest phase in Malampaya has placed the Philippines on the world map of oil and gas platform fabrication, and demonstrates the excellent technical capability of the Filipino workforce. The country now has a competitive edge in pitching for future oil and gas projects in the region and worldwide.
  • The Malampaya Foundation Inc. (MFI), the social arm of the Malampaya Deep Water Gas-to-Power Project, has implemented various Social Investment programmes in communities where it operates. The Bridging Employment through Skills Training (BEST), Galing at Negosyo Dulot ay Asenso (GANDA) and Sanayan sa Ikauunlad ng Kakayahang Pangkabuhayan (SIKAP) programmes teach beneficiaries from Subic and Palawan new skills that help them gain employment or establish their own businesses. The various Social Investment programmes implemented by MFI has benefitted more than 5,000 Subic locals and more than 500 Palawan locals in a span of three years.

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