Wood Lands Shell Philippines Contract
Wood has secured a new six-year contract with Shell to provide asset management services to the Malampaya deepwater gas-to-power project in the Philippines, it said August 20, with no indication of the value of the contract.
Wood will provide maintenance services, modifications and shutdown support as part of the contract which covers Shell’s onshore facilities in Batangas and offshore assets in the Malampaya field, near Palawan Island.
Wood CEO Robin Watson said the company had "local knowledge developed from working on these offshore assets and onshore gas plant." He added that Wood looked forward "to partnering with Shell to ensure safety and maximise productivity, across the Malampaya facilities.”
This new contract adds to Wood’s support of the Malampaya project where it has provided integrity management of subsea pipelines since 2001. The company also successfully completed the front-end engineering design, and engineering, procurement and construction of the onshore gas plant in the late 1990s and early 2000s, providing further asset support to the gas-to-power facility under a long-term agreement.
The Malampaya deepwater gas-to-power project represents one of the largest investments in the history of the Philippines. It was the start of the country’s natural gas industry supplying clean, natural gas to provide 3.2 GW of power to meet about 30-50% of the country’s power generation requirements. The country is looking for alternative sources of gas as the field is declining.
Shell operates Malampaya with 45% equity, alongside Chevron with 45%, and state Philippine National Oil Corporation-Exploration Corporation 10%. Its share of equity production from Malampaya in 2017, according to the latest Shell annual report, was 43bn ft3 (2016: 45bn ft3). That works out at 2017 production of 117.8mn ft3/d net to Shell, or 261.8mn ft3/d (2.7bn m3/yr) at 100% equity.
The Malampaya deepwater gas-to-power project represents one of the largest investments in the history of the Philippines, delivering up to 20% of the country’s electricity requirements using indigenous resources of natural gas, according to Shell. The Malampaya gas field has proven reserves of about 2.5-3.5 trillion ft3 of gas, according to the government.