The Service Contract 38 (SC38) Consortium, led by Prime Energy Resources Development BV, said Thursday it is on-track towards extending the life of Malampaya deep water-gas-to-power project with the award of a major contract worth $180 million to Allseas Nederland (Brasil) B.V.
Allseas, a world-leading contractor in the offshore energy market, will install the pipeline and umbilicals that will connect two new wells to the Malampaya Shallow Water Platform in northwest Palawan.
The wells will be drilled in 2025 and are expected to deliver new gas by 2026.
“As a service contractor to the government, we are committed to maintaining high standards of production and exploration that have defined the Malampaya project since its inception in 2001. By increasing our gas supply, we extend Malampaya’s life and sustain our own ‘sariling atin’ Filipino gas, always available and at a stable and predictable price,” said Prime Energy president and chief executive Donnabel Kuizon Cruz.
Prime Energy said this is a major milestone in the consortium’s Malampaya life extension project dubbed “Project Sinagtala” as it progresses well into the project execution phase.
Prime Energy, a subsidiary of businessman Enrique Razon’s Prime Infrastructure Capital Inc., is a natural gas exploration and development company.
Project Sinagtala aims to develop phase 4 of the Malampaya deep water gas-to-power project, extending the life of the gas field in accordance with the 15-year license extension granted to the consortium by President Ferdinand Marcos Jr. in May last year.
Prime Energy announced in March it also awarded a contract to Noble, one of the largest offshore drilling contractors in the world for Phase 4.
The Marcos administration, through the Department of Energy (DOE) led by Secretary Raphael Lotilla, has actively promoted the growth of indigenous oil and gas resources as part of the government’s long-term solution for energy security and independence.
Project Sinagtala is expected to increase domestic gas supply and ensure consumers benefit from stable and reliable energy that is accessible to existing and new gas power plants, in line with the Philippine Energy Plan.
The consortium’s focus in the execution phase through the end of year is to finalize the detailed well design to become drill-ready and develop the pipeline design to ensure it can withstand all load stress scenarios applicable in the challenging deepwater subsea canyon crossing of the Camago-Malampaya field.
“We are fully prepared to proceed with Project Sinagtala as we have, over the past year, built the required local expertise to successfully deliver the wells and install the required subsea infrastructure,” Cruz said.
The other members of the all-Filipino SC 38 consortium are the Philippine National Oil Company-Exploration Corp. (PNOC-EC), UC 38 LLC and Prime Oil and Gas Inc.
“Project Sinagtala is a testament to our strong partnership with the government in advancing the Philippines’ energy security. We thank the DOE for empowering Prime Energy and the consortium to drive forward Project Sinagtala and, in turn, support the development of the country’s indigenous gas resources,” said Cruz.
The Malampaya gas field off the province of Palawan is the country’s first and only indigenous gas resource. It supplies about 20 percent of Luzon’s electricity needs.
