Keppel Subic to build fabrication yard for Malampaya deep well platform
Keppel Subic Shipyard Inc. is building a fabrication yard for the deep well platform of Malampaya gas project in offshore Palawan, Shell Philippines Exploration BV said Friday, noting that the fabrication facility will be constructed next week
The offshore project entails $1 billion in new investments from the Malampaya consortium to continue supplying the Luzon grid 40 to 45 percent of its energy needs.
The Malampaya consortium is set to hold a "strike steel" ceremony in Subic Freeport next week, launching the construction of the fabrication yard for the Malampaya deepwater gas-to-power project.
"The strike steel or cutting the steel ceremonies at Keppel paves the way for the construction of the platform for Malampaya 3," Roberto Kanapi, Shell Philippines vice president for communications said Friday.
Earlier, Shell Philippines Exploration managing director Sebastian Quiniones noted the fabrication yard “will not only generate local employment, but is also expected to bring technical expertise into the country as it can serve as a possible site for future complex fabrication projects.”
Keppel Subic will build, install, and integrate the substructure and topside modules of the platform to support the completion of Malampaya 3. Building the fabrication yard and the platform is expected to generate at least 1,200 jobs, according to Shell Philippines.
The consortium has decided to proceed with the next development phase of the Malampaya gas field in northwest Palawan to maintain the level of production and maximize the recovery of indigenous natural gas from the Malampaya and Camago reservoirs, the company noted.
"Malampaya Phase 2" entails drilling and development of two additional wells in 2014 and "Malampaya Phase 3" involves the installation of a new platform where additional equipment and facilities in 2015.
Malampaya Phase 3 intends to keep the level of gas production to meet the commitments under existing sales agreements so that a steady supply of natural gas to power plants that feed the Luzon grid is maintained, according to the consortium.
The gas field has proven reserves of up to 3.2 trillion cubic feet, of which around 1 trillion has already been consumed.
The Malampaya consortium operates over Service Contract 38. Consortium operator Shell Philippines has Chevron Malampaya LLC and Philippine National Oil Company – Exploration Corp. as joint venture partners.
It awarded the fabrication yard contract to Keppel Subic last July. — VS, GMA News