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The Leading Edge; September 2002; v. 21; no. 9; p. 898-901; DOI: 10.1190/1.1508941
© 2002 Society of Exploration Geophysicists
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Growth opportunities in the Philippine natural gas industry

Rufino B. Bomasang

PNOC-EC, Manila, Philippines

Lawrence M. Gochioco

GX Technology, Houston, Texas

Corresponding author: lgochioco@gxt.com

The first 20% of the full text of this article appears below.

The development of a Philippine natural gas industry was initially conceived after the 1989 discovery of the deepwater Camago gas field offshore northwest Palawan by Occidental Petroleum (OXY). The field was initially estimated to contain one trillion ft3 (tcf) of recoverable natural gas and was then the largest hydrocarbon discovery ever made in the country. However, the field was in very deep water (~1 km) and far from the power generation market in Luzon and, thus, was deemed uneconomic.

Subsequent feasibility studies suggested that the power sector in Luzon could provide a viable gas market, provided gas reserves were around 4 tcf. OXY then invited Shell to be a partner, primarily because of the latter's proven expertise in developing deepwater oil and gas fields especially in the Gulf of Mexico. Shell became a 50–50 joint venture (JV) partner with OXY in December 1990 and also took over as operator. A key condition for Shell was the Philippine government's affirmation that the natural gas would be transported by pipeline from offshore Palawan to the main Luzon island.

The Shell/OXY JV first drilled the North Iloc prospect at the northern edge of the block, which turned out dry. The JV then decided to drill the Malampaya-1 well in a structure adjoining Camago. In May 1992, Malampaya-1 turned out to be a major gas discovery, much . . . [Full Text of this Article]






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