Shell: Gas production starts from new Malampaya platform

Gas production has started from the new platform at the Malampaya field offshore Palawan in the Philippines.

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 Monday to inaugurate the new platform, and mark the start of production.

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 50km offshore from Palawan in western Philippines.

Combined with the 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, Shell said in a statement on Thursday.

The event on Thursday also marked the 25th anniversary of Service Contract 38 (SC38), which laid the foundation for the Malampaya Deep Water Gas-to-Power Project.

“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.”

According to Shell, a team of more than 1,400 Filipino workers took about two years to build the platform at the Keppel Shipyard in Subic, Zambales.

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.