Malampaya

Malampaya Natural Gas and Power Project Profile

The Malampaya Natural Gas Field is located approximately 50-80 kilometers off the coast of Palawan Island in the West Philippine Sea.
The field is situated in water depths of about 820 meters, with the subsea wells located at depths of around 850 meters.

The Malampaya Deep Water Gas-to-Power Project is one of the largest and most significant industrial endeavors in Philippine history. It marked the birth of the natural gas industry in the Philippines.
The project began commercial operations in January 2002 and has been a crucial source of energy, powering up to 20% of Luzon’s electricity requirement.

The project is operated by Shell Philippines Exploration (SPEX), a subsidiary of Shell, which holds a 45% interest in the project.
The other joint venture partners are Chevron Malampaya LLC with a 45% interest and the Philippine National Oil Company-Exploration Corporation (PNOC-EC) with a 10% interest.

The Malampaya field is estimated to contain up to 3.5 trillion cubic feet (Tcf) of gas, 85 million barrels of condensate, and up to 40 million barrels of oil.
The field currently produces more than 429 million cubic feet of natural gas per day (Mcf/d).

The project includes five production wells, one shallow-water production platform, and one depletion compression platform (DCP) installed as part of the phase three development in 2015.
The offshore facilities are connected to an onshore gas processing plant in Batangas via a 504-kilometer-long underwater pipeline.

The shallow-water production platform is supported by a concrete gravity sub-structure (CGS), the first to be constructed in the Philippines. The CGS was built in a purpose-built dry-dock in Subic Bay and installed on a pre-prepared foundation on the seabed.
The topsides of the platform, fabricated by Sembawang Marine & Offshore Engineering (SMOE), include a three-level integrated deck with various facilities such as major pumps, separation equipment, and power-generation gas turbines.
The depletion compression platform (DCP) was manufactured at Keppel’s Subic Shipyard and installed to maintain the field’s gas production level.

Phase 1: Included the drilling of three production wells, the installation of the shallow-water platform, and the laying of the pipeline. This phase was completed by 2001.
Phase 2: Involved the drilling of two additional production wells in 2013.
Phase 3: Included the design, fabrication, and installation of the new Depletion Compression Platform (DCP) in 2015 to maintain gas production levels.

The Malampaya project has contributed over USD $12 billion in revenues to the Philippine government since its inception.
It has reduced oil imports, ensured a more stable supply of cleaner energy from an indigenous resource, and met up to 20% of the country’s energy requirements.
The project has also created local employment opportunities and brought technical expertise into the country, particularly with the construction of the DCP being the first offshore platform fully built in the Philippines.

Shell actively undertook a community consent process as part of its Environmental Impact Study (EIS), engaging with affected communities to address their concerns and ensure their consent.
The project involved significant community engagement and the formation of a council to facilitate meetings and resolve disputes between Shell and the affected communities.