Swiss marine construction giant, Allseas, has just clinched a $180 million contract to lay pipelines at the Malampaya gas field, located off Palawan Island in the Philippines.
Malampaya is a cornerstone of the Philippines' energy supply, delivering around 20% of the nation’s electricity since coming online in 2001. This contract, awarded by a consortium led by Prime Energy Resources Development, ensures the longevity and efficiency of this vital energy source.
What’s the Deal?
Prime Energy Resources Development, along with UC38, PNOC Exploration, and Prime Oil and Gas, is driving Phase 4 of the Malampaya expansion. This phase focuses on connecting two new wells to the existing shallow water platform. What’s impressive? The pipelines designed for this project are built to endure the toughest conditions, ensuring that the gas keeps flowing smoothly once production begins in 2026.
Who are the Driving Forces Behind Malampaya’s Expansion?
Prime Energy Resources Development is the leading force behind the Malampaya project. As the operator and manager of the gas field, Prime Energy is responsible for overseeing all aspects of the field’s operations and development. The company is dedicated to optimising the extraction and delivery of natural gas, ensuring that the Malampaya field continues to be a reliable energy source for the Philippines.
UC38, part of the Udenna Corporation and known officially as UC Malampaya Philippines Pte. Ltd., plays a big role in the Malampaya project. UC38 belongs to the Udenna Group, a major player in the Philippines with businesses in everything from energy and logistics to real estate.
Their work is all about making sure the Malampaya gas field can keep up with the Philippines’ growing energy needs, helping to power homes and businesses across the nation.
PNOC Exploration Corporation (PNOC EC) is the upstream oil, gas, and coal subsidiary of the state-owned Philippine National Oil Company (PNOC). PNOC EC’s role in the consortium is critical, as they bring government-backed expertise and resources to the project. Their involvement ensures that the Malampaya expansion aligns with the national energy policy, contributing to the country’s energy independence and security.
Prime Oil and Gas is another important player in the consortium, bringing in valuable expertise and resources for the Malampaya expansion. As part of the Prime Energy family, they specialise in the exploration and production of oil and gas. Their deep knowledge and hands-on experience are crucial to making sure this project succeeds. With Prime Oil and Gas on board, the consortium is pulling together a diverse range of skills and know-how to manage and grow the Malampaya field in the best way possible.
Engineering Marvels
The technology behind this project is as impressive as the numbers. Allseas is installing a sophisticated system designed to withstand all load stress scenarios, meaning the pipelines can handle the intense pressure and environmental conditions found underwater. These pipelines, along with umbilicals (which are cables that supply power and communication between the surface and the underwater equipment), will connect the new wells directly to the existing platform, ensuring a steady and reliable supply of natural gas.
And let’s not forget about the depletion compression platform, which was added during Phase 3. This platform is crucial because, as a gas field matures, the natural underground pressure that pushes gas to the surface starts to decline. The depletion compression platform boosts this pressure, allowing the gas to continue flowing efficiently and ensuring that every bit of energy is extracted from the field before it’s fully depleted.
What’s Next?
The consortium is already planning the next step: drilling a third exploratory well in 2025, just 15 km from Malampaya. This well could uncover new oil and gas deposits, further extending the life of this critical energy source. With the recent 15-year extension of Service Contract 38, Malampaya is determined to remain in the Philippines’ energy landscape for years to come.
