The consortium operating the Malampaya natural gas project in the Philippines will invest $1 billion to extend the life of the field by 15 years to 2039, Energy Undersecretary Jose Layug said today.
The group led by Royal Dutch Shell Plc. and Chevron Corp. will invest $250 million for the second phase of the project, which involves drilling two additional wells to be completed by February 2014. Another $750 million will be invested to install a new platform, Layug told reporters. State-owned PNOC Exploration Corp. (PECB) holds a 10 percent stake in the project.
The existing five wells in Malampaya were earlier estimated to produce gas until 2024. Its output powers three plants with a total capacity of 2,700 megawatts, almost half of the electricity generated in the main Philippine island of Luzon.
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