The Malampaya group awards a $180 million contract to support new wells

THE MALAMPAYA consortium, led by Prime Energy Resources Development BV, has awarded a contract worth about $180 million (about P10 billion) to a Netherlands-based offshore energy contractor.

The contract is intended to support the execution of the planned drilling of new wells, Prime Energy said in a statement on Thursday.

Allseas Nederland (Brasil) BV, a subsidiary of Allseas Group specialized in the installation of offshore pipelines, will install the pipeline and umbilicals to connect two new wells in the Camago and Malampaya East fields to the Malampaya Shallow Water Platform.

Prime Energy said Project Sinagtala, an initiative to advance Phase 4 of the Malampaya deepwater gas-to-power project, aims to extend the life of the Malampaya gas field, which is expected to be depleted by 2027.

“Project Sinagtala is expected to increase domestic gas supply and ensure that consumers benefit from stable and reliable energy accessible from existing and new gas-fired power plants, in line with the Philippine Energy Plan,” the company said.

The Malampaya consortium consists of Prime Energy Resources Development BV, which is leading the project; UC38 LLC, an energy investment company; Prime Oil & Gas, Inc., which focuses on upstream oil and gas activities; and the state-owned PNOC – Exploration Corp., a government agency responsible for the exploration and development of oil, gas and coal resources in the Philippines.

It has secured a fifteen-year extension of Service Contract No. 38 through 2039, paving the way for the exploration and development of additional gas reserves.

“As a service provider to the government, we are committed to maintaining high production and exploration standards that have defined the Malampaya project since its inception in 2001,” said Donnabel Kuizon Cruz, president and CEO of Prime Energy.

“By increasing our gas supply, we extend the life of Malampaya and sustain our own ‘sariling atin“Philippine gas, always available and at a stable and predictable price,” she added.

In March, Prime Energy announced it had awarded a $69.9 million contract to London-based Noble for the use of its deepwater drillship. The contract includes the drilling of two wells and a third exploration well, Bagong Pagasa. – Shelden Joy Talavera