Drilling firm tapped to extend life of Malampaya field
MANILA, Philippines — The Razon Group’s Prime Energy Resources Development B.V. awarded a $69.9-million (P3.88 billion) contract to American offshore drilling company Noble in a move to extend the life of the Malampaya gas project.
In a statement on Friday, Prime Energy said Noble’s special ship “Noble Viking” would drill two deep water development wells in the Camago and Malampaya East fields, which could contain more gas reserves.It will also cover a third exploration well, Bagong Pag-asa, located approximately 15 kilometers north of Malampaya.
The consortium operating the gas field sought the extension of the Malampaya contract not only to harness and utilize the remaining gas reserves but also to explore adjacent field areas.Noble Viking drilling, according to Prime Energy, has special systems that allow for the creation of two wells at the same time, making the process quick and efficient.
‘Improved energy security’
“Noble is pleased to join, together with Prime Energy, in this important drilling campaign, which will ultimately contribute to improved energy security for the Philippines,” Noble senior vice president for marketing and contracts Blake Denton said.
READ: 80% success rate predicted for new Malampaya gas wells
This is the third contract awarded by Prime Energy, a unit of Razon-led Prime Infrastructure Capital Inc., which owns a 45-percent operating interest in the Malampaya project after acquiring the shares of Shell Philippines Exploration B.V. The two other members of the consortium are Udenna Group’s UC38 LLC and state-owned Philippine National Oil Co.-Exploration Corp.
Prime said the other contracts involved the supply of long lead materials, offshore casing and tubular goods and wellhead equipment amounting to $45 million (P2.5 billion).
Prime Energy managing director and general manager Donnabel Kuizon Cruz said these developments ensured “that we are on track for the planned drilling in 2025.”
READ: Razon firm exceeds Malampaya target output
“We are committed to continue providing reliable flow and supply of indigenous gas to our customers, protecting Filipino consumers from volatile forces that affect oil and gas prices,“ Cruz said.
The Malampaya deep water gas-to-power project began its commercial operations in 2002 and supplies about 20 percent of Luzon’s electricity requirements. Its service contract was extended for another 15 years until February 2039.
Prime Energy said the consortium has so far remitted to the government more than $13.5 billion (P749.3 billion) between 2001 and 2023. INQ
