Far East: Philippines
Aug. 2001 Vol. 222 No. 8 International Outlook FAR EAST Philippines The new government of President Gloria Macapagal Arroyo, which took over in January 2001, r
FAR EASTPhilippinesThe new government of President Gloria Macapagal Arroyo, which took over in January 2001, reportedly heads a relatively dynamic energy sector, with upstream participation by the Philippine National Oil Co. (PNOC) and several foreign oil companies with operating licenses. Major reforms are planned through the Philippine Energy Plan 2000-2009 (PEP) to reduce a heavy dependence on imported oil, electrify isolated areas and reduce the use of oil in power generation. With oil production in 2000 averaging 1,100 bopd, according to the Department of Oil & Gas, and consumption at 377,000 bpd, the country foots a heavy import bill, highly sensitive to crude prices. Geothermal and coal supply much of a growing power need. The major ongoing development to fuel the country’s energy plans is the 2.6 Tcf deepwater Malampaya-Camago complex northwest of Palawan with its 24-in., 312-mi long gas pipeline running to Mindoro Island, and eventually north toward Manila. The project should be fueling power plants by October 2001. Exploration. As reported by EIA, a consortium of four Australian companies and PNOC, operator with 78.5%, is exploring gas fields on and around Fuga Island under GSEC 84. The onshore Fuga 1 dry hole was drilled in mid-2000 in North Luzon. Hopes are for up to 5 Tcf to fuel a possible pipeline to Taiwan. In central Luzon, Victoria, Tarlac, is another area of interest that could yield 1 Tcf, a PNOC-led consortium is active there. BP Amoco drilled the Wildebeest 1 wildcat in Sulu Sea deep water on permit SC41B with the Sedco 601 semisubmersible in August 2000 with reported shows. BP subsequently withdrew from SC41 A and B, giving Unocal 45% and operatorship, along with Preussag (25%) and four other companies. Other prospects were being reviewed in mid-2001. A wildcat probe on permit GSEC 93 in the East Visayan basin by Trans Asia called San Isidro SX-1 was noted last year, but no results were given. Potential reserves of 60 MMbbl oil have been reported. A license was awarded PNOC for Geophysical Survey and Exploration Contract GSEC 99 off the southern coast of Mindoro Island. A full basin evaluation and analysis of many undrilled prospects are called for. The Philippines also is one of five countries to claim exploration rights on the potentially hydrocarbon-rich Spratly Islands area. Development. The Malampaya gas field in 2,800-ft water, 40 mi NW of the northern tip of Palawan dominated the news. Gas sales agreements were signed in 1998 to land gas at Tabango, Batangas City, for power generation. A 312-mi long pipeline is under construction to link the field to three power plants in Batangas. Half the length of the line will be in water deeper than 600 ft. In June 2000, the 91,000-mt concrete gravity substructure (CGS) was towed from Subic Bay and installed in 140-ft water by Brown & Root for project operator Shell Philippines Exploration (SPEX). The CGS can store up to 385,000 bbl of condensate that will be shuttled to shore by tanker.
In March, the 11,500-mt topside was towed from
constructor SembCorp Engineering International’s yard and installed by Kellog Brown & Root on the
CGS. And in April, Halliburton installed and tested two 5.5-in., 20-mi long umbilicals between the CBS and the
pre-installed subsea manifold, which will be supplied by subsea completions. Gas from Malampaya will fire
three power plants, Ilijan and Santa Rita (2), starting in October. An expansion of the pipeline by PNOC from
Batangas to Manila would move the gas to additional power plants as well as industrial / commercial sectors.
This line may also support LNG imports by 2005. Shell was committed to drill more wells last year to produce
to the subsea manifold in 2,800-ft water. The
Atwood Falcon semisubmersible has been active in the field under a multi-well contract.
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