Malampaya maintenance contract signed

The strategic alliance of UK engineering services specialist AMEC and US contractor Fluor Daniel signed last Jan. 19 a major contract with Shell Philippines Exploration B.V., worth $150 million, for the maintenance of the Malampaya Deep Water Gas-to-Power Project.

Ian Hume and David J. Greer, managing directors of AMEC Offshore Services and Shell Philippines Exploration B.V., respectively, signed the contract witnessed by Minister of State of Scotland Brian Wilson and George F. Ruffner, counselor for commercial affairs of the US Embassy.

Key executives of the joint-venture FD AMEC Philippines, Inc. and Shell and special guests from the public and private sectors attended the contract-signing, the first in the country since the joint-venture was formed in 1999.

Under the contract, FD AMEC Philippines is committed to render maintenance and various management services to the different components of the Malampaya project, which includes the production platform offshore northwest of Palawan and the onshore gas plant in Tabangao, Batangas.

The contract will run for a period of six years and represents the most significant offshore energy project ever undertaken in the Philippines. When fully operational in 2002, Malampaya is projected to meet around 30 percent of the total Philippine energy needs.

The alliance of FD-AMEC Philippines brings together the Fluor and AMEC organizations, two of the world’s largest engineering, design and management service providers. Both organizations have global interests and reach, operating in 25 countries in six continents.

In 1999, Fluor Daniel, a US-based company, had total revenues of $12.4 billion. AMEC, a UK-based firm, reported aggregate revenues of $5 billion in the first half of 2000. Both organizations employ more than 100,000 people worldwide.

The Malampaya project is the largest and most significant industrial investment in the Philippines. Its operation signals the birth of the country’s natural gas industry that will provide environment-friendly fuel as well as 2,700 megawatts of power for a period of 20 years, starting January, 2002.