3 new groups show interest in Malampaya oil field

Three new groups have expressed interest in becoming the third party in the development of the Camago-Malampaya Oil Leg (CMOL), an oil rim beneath the $4.5- billion Malampaya Deep Water Gas to Power project.

Energy undersecretary Guillermo Balce identified the new groups as Burgundy, Synergy and Black Gold. 

Balce did not provide details on the identities of the new entities that have signified interest to join the CMOL but he said Burgundy is an asset management corporation and is a local firm.

The Department of Energy (DOE) early this month invited at least five foreign oil exploration firms to serve as a third party in the oil rim development.

One of these entities, if chosen, will undertake the re-appraisal, development and production of crude oil found beneath the Malampaya gas cap in offshore northwest Palawan. 

The move is in line with the project’s terms of service issued by the DOE which allows PNOC to partner up with interested parties for the said activities.

Among the companies invited are Petronas, Nido Petroleum Phils. Pty. Ltd., and Forum Exploration, Inc. PNOC-Exploration Corp. (PNOC-EC), an oil exploration development arm of state-owned Philippine National Oil Co. (PNOC), intends to select its partners for the project not later than next month.

All these companies have, in the past, studied and reviewed the viability of producing the Malampaya oil reserves.

The selection by June this year is crucial as PNOC-EC, mandated by Malacañang, to take the lead in the oil rim development, is targeting first production of oil by end of next year.

The government has been eagerly pursuing the development of the CMOL to help reduce the country’s dependence on imported oil.

On Nov. 29, 2005, Malacañang issued Executive Order (EO) 473 which tasked the DOE to immediately develop and produce oil from the Camago-Malampaya reservoir.

The signing of an EO led to the signing of the terms of service between the DOE and PNOC on March 17, 2006. 

On the same date, the DOE, PNOC and the Malampaya SC-38 consortium also inked a tripartite agreement to allow smooth coordination between the gas and oil projects and ensure the safe development of the oil rim and unhampered operations of the Malampaya DeepWater Gas Project which currently supplies natural gas to three large power plants in Batangas.