Malampaya contractor Shell Philippines Exploration B.V. (Spex) has scheduled drilling of new wells to sustain its gas supply to off-takers and to find additional sources that may eventually be committed to new power projects and other prospective end-users.

Energy undersecretary Ramon S. Oca said the company has committed to drill one new well this year. This will be part of the four new wells that the company has committed in the work program previously submitted to the Department of Energy.

Oca said the drilling cost and other related financial requirements will be rolled upon the company’s submission of well-design, targeted around October this year.

“You will only ascertain how much the drilling cost would be once you have the well-design. That’s the time you can scour the market what are the equipment or services available that fits your drilling needs,” he explained.

Spex noted that the development plan for Malampaya entailed drilling of nine (9) wells; and only five of that had been undertaken so far. This then permits the company to drill the other four wells.

The primary intent of drilling additional well, Oca said, will be for Spex to assure that it will have enough gas to meet its supply commitments to buyers – primarily for the fuel needs of the First Gas and Ilijan natural gas plants.

“Spex has to make sure that it can sustain its gas supply, because as years pass, the level of gas that you can extract may also decline; like when there are changes in pressure and other developments in the field,” he said.

The energy official further bared the second goal would be to find additional gas and to prove if the Camago reservoir is viable.

“After the drilling of the first well, Spex will then evaluate the results. From there, they may opt to proceed with additional well drilling,” he pointed out.

The DOE official said proven reserves at the Malampaya field can power up to 3,000 megawatts of electric capacity. Of the volume, supply for 2,700 MW of power has already been committed.