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|22 February 2010
Shell seeks extending Malampaya license
Shell Philippines exploration BV is seeking a 15-year extension of its license for the Malampaya deep water-to-gas power project off Palawan, as it pursues more developments in the area covered by Service Contract (SC) 38, reported the Philippine Daily Inquirer.
According to Sebastian C. Quiniones Jr., SPEX managing director, this will extend the consortium’s SC 38 license up to 2039 from 2024, the year when the license would have expired under the original agreement.
Quiniones said the company’s application for an extension would be “part of the GSPA (gas sale and purchase agreement), and we’re just exercising ... our right as operator.”
The Malampaya consortium is currently composed of Shell—the operator of the field—and Chevron Malampaya LLC. Each has a 45-percent stake, while PNOC-Exploration Corp. holds a 10-percent stake.
The extension would also allow the consortium to proceed with its planned developments within the service contract area.
With the planned drilling activities in SC 38, the consortium hopes to find more gas reserves, Quiniones said.
The $4.5-billion Malampaya deep water gas-to-power project currently supplies 2,700 MW of natural gas to the 1,200-MW Ilijan plant of Korea Electric Power Corp., 1,000-MW Sta. Rita and 500-MW San Lorenzo plants, all in Batangas.
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