Offshore staff
(Asia-Pacific) - The Philippine government and the stakeholders in the Malampaya gas field have agreed on the development terms for the proposed 40 MMbbl Camago-Malampaya Oil Leg (CMOL) project.
The Department of Energy (DoE) has signed the first terms of service with the Philippine National Oil Corp. (PNOC) to reappraise, develop, and produce oil from CMOL as per previously issued Executive Order 473 by the country's president calling on PNOC to develop the oil deposit.
DoE has also signed a tripartite agreement with PNOC and the consortium members of Service Contract 38, Shell Philippines Exploration BV, Chevron Malampaya LLC, amd PNOC-Exploration Corp. providing for the need to ensure the protection and value of the Malampaya deepwater gas-to-power project.
PNOC's terms of service allows third-party participants in the reappraisal, development, and production of the CMOL crude oil from beneath the gas field.
PNOC has two years to reappraise the deposit with an option of a six-month extension.
A DoE coordinating committee would ensure safe operations for the production of hydrocarbon from the zone.
The tripartite deal has set a "no entry zone" as a protection to the existing gas field infrastructure installed under the SC-38 contract with the consortium.
All production and operation would have to be carried out under a separate CMOL term of service.
Speaking at the agreement signing, Energy Secretary Raphael P.M. Lotilla described the cooperation pact as an effort toward ensuring the maximization of an indigenous energy resources in the Philippines.
He also expressed hope that PNOC would be able to optimize the opportunities in the development of the oil rim for the benefit of the Filipino people and with reasonable returns for participating third parties.
03/23/06
