Philippine Daily Inquirer: IN THE KNOW: “Shell discovered the Malampaya gas field which was linked to the Camago fields.”: “Malampaya has gas reserves of about 2.7 trillion cubic feet. It is expected to reduce the country's oil import bill of $3 billion by $700 million.” (ShellNews.net) 13 Jan 05
Jan 13, 2005
NATURAL gas, dubbed the "fuel of the future," is formed underground over millions of years by the decomposition of organic matter in a similar way that oil and coal are formed. In its natural state, the gas is colorless, odorless and lighter than air.
In 1989, Occidental Philippines Inc. (Oxy) discovered a small natural gas reservoir called Camago. Shell Philippines Exploration B.V. (SPEX) then acquired a 50-percent stake in the project from Oxy. Shell discovered the Malampaya gas field which was linked to the Camago fields. Further drilling confirmed natural gas reserves 70 km northwest of Palawan.
In 1998, Malampaya's commercial viability was declared and Shell eventually bought out Oxy. Texaco Inc. later acquired 45 percent of Shell's interest. Gas Sales and Purchase Agreements were subsequently signed with First Gas Philippines and the National Power Corp. between 1997 and 1998.
On Oct. 16, 2001, President Macapagal-Arroyo formally inaugurated the $4.5-billion project.
Malampaya has gas reserves of about 2.7 trillion cubic feet. It is expected to reduce the country's oil import bill of $3 billion by $700 million.
Sources: PDI archives, Malampaya website
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