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Shell, Chevron and PNOC to kick off Malampaya Phase 3

Keppel Subic to build Malampaya compression platform

On December 7th 2012, Shell Philippines Exploration B.V. (Shell), Chevron Malampaya LLC (Chevron), Philippines National Oil Company Exploration Corporation (PNOC) will celebrate the kick off of the Malampaya Phase 3 project with a “Strike steel” ceremony in the Keppel Subic Shipyard in Zampales, Philippines.

This Malampaya Phase 3 project is part of the expansion of the Malampaya Deep Water Gas-To-Power project to explore and develop the offshore natural gas field under the Service Contract 38 license in the Philippines.

During this ceremony, Shell and its partners in the Service Contract 38 license will assist to the cutting of the first steel plate to be used for construction of the third Malampaya compression platforms.

Within this Service Contract 38, Shell and its partners share the consortium working interests in the Malampaya gas field with:

 Shell 45% is the operator

 – Chevron 45%

 – PNOC 10%

Discovered in the 1990, the Malampaya gas field is located 80 kilometers northwest of Palawan island, about 3,000 meter depth from the sea level.

Very quickly the finding appeared to be significant with:

 – 2.7 trillion cubic feet (tcf) of natural gas

 – 85 million barrels of condensate

Then Shell and it partners had to over come multiple challenges to develop the Malampaya gas field which started commercial operations in 2001 and required $4.5 billion capital expenditure.

While the gas field is located in deep water, the production platforms could be located in the shallow water, at the limit of the continental shelf.

The Malampaya Deep Water Gas-To-Power includes:

 – Offshore production platform with separation of the condensate

 – Export gas pipeline from the Malampaya gas field to the Batangas island 500 kilometers north

 – Catenary-anchored leg mooring boy for the export of the condensate

 – Onshore gas central processing facility (CPF) on the Batangas Island

Then the CPF supply 2.700 MW power plant for Luzon.

After 10 years production, Shell, Chevron and PNOC had to work on new investment to compensate the depletion of the actual Malampaya gas field.

Fluor won Shell Malampaya Phase 3 EPCM contract

Shell and its partners, Chevron and PNOC, made the final investment decision (FID) for Malampaya expansion project comprising two phases:

 – Phase 2 is to increase production capacity in drilling and developing additional wells

 – Phase 3 includes a new depletion compression platform to be linked to the existing one.

The phase 2 should cost $250 million and should be completed in 2014.

The phase 3 is budgeted for $750 million capital expenditure and planned to come on stream in 2015.

This platform will be the first of that kind to be designed engineered and constructed in Philippines.

The Texas-based engineering company Fluor completed the front end engineering and design (FEED) of the Malampaya compression platform in its Manila and Cebu offices in Philippines.

Then Fluor Offshore Solutions has been awarded the engineering, procurement and construction (EPC) support contract.

In this contract Fluor with provide Shell, Chevron and PNOC with detailed design, engineering, procurement and execution support services for the supervision of the plaform frame sub-contracted to the local Keppel Subic Shipyard in Zampales.

With this Malampaya phase 3, Shell,Chevron and PNOC are offering to Philippines the first offshore compression platform of that kind made locally including the topsides

 For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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