PAP exec cites lessons learned from Malampaya

MANILA, Philippines —  The Malampaya Deep Water Gas-to-Power project has proven to be the most important energy project in the Philippines in recent time. And this is something which other energy schemes can learn from, Petroleum Association of the Philippines (PAP) chairman Rufino Bomasang said in a report.

In the article titled “Towards Philippine Energy Security: Learning from Malampaya,” the PAP chairman penned how the outstanding success of Malampaya could serve as a lesson for future developers of upstream energy projects in the Philippines.

In the article, Bomasang  cited the challenges that occurred during the first oil crisis in the 1970s in the Middle East. This turmoil pushed the Philippines to launch a comprehensive Indigenous energy program in 1976, lessening its heavy reliance on imported energy.

“This ultimately led to the reduction of Philippine dependence on imported energy from 92 percent  in 1976 to about 40 percent by 2016,” Bomasang said.

According to Bomasang,  this is the outcome of different initiatives, among them being the discovery of small, but commercially viable oil fields and the development of the world class Malampaya Deep Water Gas-To-Power Project.

Bomasang broke down the four key “ingredients” to Malampaya’s success. First of them being Shell’s extensive experience in developing deep water gas projects—particularly in the Gulf of Mexico. Second, Shell has been committed to sustainable development from the early stages of Malampaya in 1998 up until 2001, under David Greer as SPEX managing director. Third, SPEX maintained the employment of Filipino engineers, technicians, and workers in the entire organization. The “Filipinization” process was further accelerated when Sebastian Quiniones was appointed as managing director. Don Paulino then took over as managing director and general manager upon Sebastian’s retirement.

Finally, when it came to manage a large exploration project, Shell’s decision to allow PNOC-EC to participate enabled its managers and engineers to take notes from the oil giant.