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Key facts
Key facts Malampaya
Location: North-west Palawan, Philippines  
Reservoir depth:
820 metres (2,690 feet)
Interests: Shell Philippines Exploration B.V. 45% (Shell-operated), Chevron 45%,
Philippine National Oil Corporation-Exploration Corporation (government) 10%
Key contractors: Malampaya is a joint undertaking of the Philippine national government
and the private sector. The project is spearheaded by the Philippine
Department of Energy (DOE) and developed and operated by Shell
Philippines Exploration B.V. (SPEX) on behalf of joint venture partners
Chevron Malampaya LLC and the Philippine National Oil Corporation-Exploration Corporation.
Fields: Camago Malampaya gas reservoir  
Production: ~ 380 mmscf/d natural gas production; ~ 15 kb per day condensate.

Current developments

Since it began operations in 2001, the Malampaya project has produced cleaner-burning natural gas for three power plants in Batangas, which have a combined generating capacity of 2,700 megawatts.

The project is now in its next stages of development, Malampaya Phases 2 and 3, which aim to maintain the level of gas production to ensure a steady supply of natural gas to power the Luzon electricity grid. Luzon is the largest and most populous island in the Philippines.

Two additional production wells were successfully installed in 2013, marking the completion of Malampaya Phase 2. Malampaya Phase 3 involves the design, fabrication and installation of a new depletion compression platform, which will start production in 2015.

Technology

State-of-the-art technology extracts natural gas and condensate from the depths of the Palawan Basin. It then processes the gas in a nearby shallow water production platform and transports it through a 504-km (313-mile) underwater pipeline. An onshore gas plant receives the gas for further processing, before it is sent to the three power plants in Batangas.

Environment and society

The flow of indigenous natural gas is helping to fuel the country’s growth and progress, in partnership with the government. In cooperation with partners Oriental Mindoro and Batangas, Shell is supporting health improvement, livelihood generation programmes and environmental conservation efforts through the Malampaya Foundation.

In Palawan, for example, the foundation, together with the province of Palawan, is implementing a US aid programme called Movement Against Malaria in 344 villages. The programme has set up centres in each village to ensure early diagnosis and prompt treatment of malaria.

In 2002 the United Nations Environmental Programme and the International Chamber of Commerce awarded Malampaya the World Summit Business Award for Sustainable Development in Partnerships for achieving a careful balance of the social, environmental and economic components during development. 

Malampaya Phase 3 includes the first offshore platform to be built completely in the Philippines. The project is generating local employment opportunities and bringing technical expertise into the country. It has provided more than 1,200 new jobs for Filipinos, generated more business for local companies and, over the long term, is improving the skills of local workers.

In 2013 the Malampaya Health, Safety and Environment (HSE) Training Centre was inaugurated. It has since trained more than 9,000 Filipinos to world-class HSE standards. This training is mandatory before workers can work on the project, either in the fabrication yard or offshore.