5 drilling activities set this year

The country's search for indigenous energy sources continues as the Department of Energy (DOE) reported five drilling activities for this year.

The Malampaya natural gas offshore site in northern Palawan an ongoing project, is scheduled for further development in the first and second quarter of the year. Called the Malampaya Deep Water Gas Project, it is the biggest gas discovery in the country with potential reserves of 2.5 trillion cubic feet. It is capable of generating 3,000-megawatts (MW) of power over a 20-year period. The fields were discovered in 1989 and confirmed as commercial in 1994.

Total cost for the exploitation of the Camago-Malampaya gas fields has reached $1.6 billion with the project remaining on track for its first commercial sale in 2002.

"We are very much on track, and there are no obstacles," David J. Greer, managing director of Shell Philippines Exploration B.V. (Spex), said. Spex is the exploration and development arm of petroleum giant Pilipinas Shell Petroleum Corp. The gas field is jointly developed by Spex, Texaco Inc. of the USA and the government-run Philippine National Oil Co. (PNOC).

Also in the first quarter of the year, Forum Exploration will be looking for oil in Northern Cebu while Alcorn Petroleum Corp. will do the same in the Eastern Visayas in the same period.

Looking for natural gas resources is PNOC through its subsidiary PNOC Exploration Corp. (PNOC-EC). This will be in the Fuga Islands and the Cotabato Basin in the second quarter and the last quarter, respectively.

Three gas power plants, which are being constructed by the Kepco Ilijan Corp. (Keilco) and the First Gas Philippines Corp. (FGPC), are the principal buyers of natural gas.

Keilco is building a 1,200-MW gas-fired power facility in Ilijan, Batangas while FGHC is putting up a 1,000-MW power plant in Sta. Rita, Batangas, and another 500-MW gas facility in San Lorenzo, also in Batangas.

Meanwhile, pipe and flowline laying works will commence in early 2000 while topside installation will be in the first quarter of 2001.

The Malampaya natural gas field is considered the largest and most significant investment of Philippine business with total portfolio investment of approximately $4.5 billion (P175.5 billion).