Malampaya is a national government project lead by the Department of Energy and operated by Shell Philippines Exploration B.V. (SPEX) on behalf of joint venture partners Chevron Malampaya LLC and the Philippine National Oil Company-Exploration Corporation (PNOC-EC).

Deepwater technology is utilized to extract natural gas from some 3,000 meters below sea level which involves remote subsea facilities.  From the wells,  wet gas is transported through flowlines to an offshore shallow water production platform for initial processing.  Condensate is stored at the base of the platform while the dried gas is transported via a 504-kilometer underwater pipeline to the onshore processing gas plant in Batangas.  Two onshore pipelines transport the fuel to three gas-fired power stations, namely, Sta. Rita (1,000 MW), San Lorenzo (500 MW) and Ilijan (1,200 MW).

Natural gas from Malampaya likewise fuels the government’s pilot Compressed Natural Gas for public transport launched in 2008.

Malampaya is moving into its next phase of development, kicked-off in August 2011, to maintain the level of gas production for the remaining life of the field.  Two new wells will be drilled and developed by 2014 for Malampaya Phase 2, and a new depletion compression platform will be installed by 2015 for Malampaya Phase 3. 

As of September 2011, the government’s share in Malampaya revenues has reached US$5 billion and forecasted to reach US$10-12 billion over the life of the project.

Natural gas is the cleanest and most efficient fossil fuel compared to other fuels used for power generation.   It is estimated that some 1.35 million tonnes of carbon dioxide are displaced when the power stations are operating in full 2,700 MW capacity, compared to other fuels used for power generation.

The event began with a ceremonial tee off participated in by Department of Energy (DOE) Undersecretary Jose M. Layug, Philippine National Oil Company Exploration Corporation (PNOC-EC) Vice-President for Finance, Planning and Treasury Lionel Calo, Chevron Asset Manager Sabino Santos and Shell Philippines Exploration BV (SPEX) Managing Director Sebastian Quiniones. The competition began soon after, where 49 participating golfers played a full round of golf.

The Awarding Ceremonies began with the opening remarks from DOE Undersecretary Jose M. Layug, who spoke about Malampaya’s contribution to the country’s goal of energy independence. “Malampaya’s has a big role in helping secure the country’s energy sufficiency”, Layug said.

Emerging victorious were:
Class C Champion: DOE Undersecretary Jose M. Layug
1st Runner-up: Rey Langit
2nd Runner-up: Dindo Ostrea

Class B Champion: Jojo Robles
1st Runner-up: Rafael del Pilar
2nd Runner-up: Mon Tomeldan

Class A Champion: Mary Ann Reyes
1st Runner-up: Bing Jaleco
2nd Runner-up: Alex Magno

Low Net Champion: Dennis Gamab

Low Gross Champion: Resty Perez.

At the end of the programme, SPEX Managing Director Sebastian Quiniones gave a message, and thanked all those who helped to make the tournament a success. The commemorative golf tourney is just one of a series of special events to mark the project’s historic decade-long journey since it began commercial operations in 2001. [SPEX Communications]

Forty-two residents from different barangays in the town of Victoria, Oriental Mindoro participated in a comprehensive five-day Integrated Farming Bio-System (IFBS) training which gave them the necessary skills and knowledge in modern organic farming, animal husbandry, and vegetable farming.
A project of the Malampaya Foundation, Inc. (MFI), IFBS is part of its sustainable development thrust for communities in Oriental Mindoro, with the aim of empowering its trainees towards self-sufficiency and entrepreneurship.

Acting Provincial Agriculturist for Oriental Mindoro Pedro Dimailig said that through IFBS and its other projects, Malampaya has set the example for corporate social responsibility. “IFBS has found an ally with Governor Alfonso Umali’s thrust of maximising all agriculture areas for productive use by its constituents,” Dimailig said during the IFBS graduation ceremony held at the Knights of Columbus building in Poblacion Dos, Victoria last August 12, 2011.

At the event, Dimailig also announced that Oriental Mindoro has improved its socio-economic status, ranking 12th among the poorest provinces in the country in 2009, and moving all the way up to the 44th spot this year.

MFI Executive Director Luke Esteban likewise expressed his gratitude to the provincial officials of Oriental Mindoro as well as to the municipal officials of Victoria, for their warm reception of IFBS which he said could very well address the issue of poverty in the province.

“The training does not end in this graduation, I am sure, you can use it in your farms and you can share the knowledge with your neighbours as we all aim to attain the full potential of Mindoro as an agricultural province,” Esteban told the graduate-trainees.

Mindoro has become a special focus of MFI projects because of its acknowledged status as the rice granary and food basket of the MIMAROPA (Mindoro-Marinduque-Romblon-Palawan) region. But MFI Programme Manager Teddy Bolivar said the foundation has also conducted the IFBS in Palawan and Batangas, and in secondary class municipalities like San Teodoro and Baco, where it has proven to be very helpful.

Mindoro has become a special focus of MFI projects because of its acknowledged status as the rice granary and food basket of the MIMAROPA (Mindoro-Marinduque-Romblon-Palawan) region. But MFI Programme Manager Teddy Bolivar said the foundation has also conducted the IFBS in Palawan and Batangas, and in secondary class municipalities like San Teodoro and Baco, where it has proven to be very helpful.

Dimailig said the provincial government and its private sector partners like Malampaya will continue to educate the people to avoid the importation of foods that can otherwise be grown locally. He revealed that he is eyeing the establishment of central buying stations that could serve as venues for the selling of locally grown food products, with the help of Malampaya and other non-governmental groups. At the graduation ceremony, Alejandro Fajardo, Adelina Vicente and Larry Mazo, three participants from Victoria, spoke about the benefits of the IFBS training. Fajardo said that he learned important information on environment issues, while Vicente said she is now wary of using chemicals fertilisers after learning how to produce organic fertilisers using indigenous substances. Mazo for his part said that the lecture on the destructive effects of illegal logging and the “kaingin” system (slash and burn farming), and learning the technique of how to revitalise soil had the most impact on him.
The participants also learned how to cook spicy fish, smoked fish, and the technique of making boneless bangus (milkfish) with the help of trainers from the Bureau of Fisheries and Aquatic Resources (BFAR).

Victoria Mayor Alfredo Ortega Jr. was represented by Melgar Fadriquilan, who relayed his gratitude to Malampaya for all its efforts, and who conveyed the town’s pledge of continuous support for all its ongoing developmental programmes in the province. [SPEX Communications]

Malampaya Foundation Inc. (MFI) held its first ever Neighbourhood Emergency Services Team (NEST) Olympics last September 16, 2011 at the Batangas City Coliseum grounds which was participated by the residents from 11 barangays in the city. The successful event was in cooperation with the Batangas City Government, Department of Interior and Local Government (DILG)-Batangas, Bureau of Fire Protection (BFP), and the Philippine Red Cross Batangas Chapter.

The aim of the activity was to measure the knowledge and preparedness of each community when responding to an accident or a calamity. Brgy. Tabangao Ambulong grabbed the 1st place, with a Php 10,000.00 cash prize. Finishing 2nd place was BUBI (Buklod Unlad ng Batangas Inc.) with a Php 7,500.00 cash prize. And landing on the 3rd place was Brgy. Malitam bagging the Php 5,000.00 cash prize.

The programme started with a motorcade lead by MFI and BFP to show the significance and objective of the project. It was then followed by a short programme where DILG Batangas Director Victoria Amor San Gabriel emphasised the importance of the Republic Act (RA) 10121 that supports the strengthening of the Disaster Risk Reduction and Management Council in each barangay. She also addressed the barangay leaders and volunteers who lent their time for the activity. “This is for your community’s welfare, and for your safety also”, added San Gabriel.

Shell Batangas’ Communications Manager Ma. Divina De Leon said during her welcome remark that PSPC and Malampaya put safety as an utmost priority and stressed the importance of safety in everything that its employees do. She also said that Shell will always support MFI’s projects on safety and disaster preparedness.

There were different kinds of activities during the Olympics. The Bureau of Fire Protection led the Fire Fighting, Saving Private Ryan, and Bucket Relay which were all relevant on what-to-do and how-to-do-it guidelines when there is fire.

On the other hand, the Philippine Red Cross was in charge during the Situational analysis, first aid and medical, cardio-pulmonary resuscitation (CPR) and patient transport. These activities are necessary first aid treatment when accidents and calamities happen.

During the closing programme, MFI’s Programe Manager Teddy Bolivar acknowledged and congratulated all the participants and volunteers. He also asked for the volunteers’ continuous support to their community’s disaster-preparedness and activities that highlight safety.

Malampaya Foundation Inc. (MFI) started its NEST programme in 2007. At present, the programme has already produced 448 graduates.

The IFBS was held at a public communal building in Lantuyang, a barangay located on the slopes of Mt. Halcon in northern Oriental Mindoro. Along with 41 other Mangyan volunteers, Irene was the beneficiary of the short course on modern agriculture, which was divided into various lectures given by farming experts from Shell.

IFBS is an integrated approach to farming which advocates the maximisation of available and local resources, as well as the use of home-made organic fertiliser. The project is a joint effort of the Mindoro Biodiversity Conservation Foundation, Inc. (MBCFI) and the Malampaya Foundation, Inc. (MFI), the two groups that have been involved in implementing the sustainable development and environmental thrusts of the Malampaya Joint Venture Partners in Mindoro.

After her training, Irene got involved in the maintenance of her family’s rice paddies in a three and a half hectare farm in Sitio Sungi, some two kilometres from Lantuyang. The paddies have been tilled by her father and brothers since 1992 and are her family’s main source of livelihood. Today, Irene applies her IFBS training on the use of organic fertilisers to benefit the farm’s production.

Many MBCFI projects are geared towards the Mangyans who are the key stakeholders in the effort to preserve Mindoro’s unique environment and culture. [SPEX Communications]

President Benigno Aquino III, together with DOE Secretary Jose Rene Almendras and Shell Country Chairman Edgar Chua, witnessed the contract signing of the Basic Design and Engineering Package (BDEP) Contract, the first contract awarded by the MP2&3 Development Project. Sealing the deal were (left to right) SPEX MP2&3 Project Manager Antoine Bliek, SPEX Managing Director/LSUR Sebastian Quiniones, Fluor Daniel General Manager Dan Spinks and Fluor Senior Vice President and Head of Offshore Solutions, Lee Richardson.

Malampaya’s next-phase development aims to maintain the level of production and maximize the recovery of indigenous natural gas from the Malampaya and Camago reservoirs.  “Malampaya Phase 2”  will entail drilling and development of two additional wells by 2014; “Malampaya Phase 3”  will involve the installation of a new platform where additional equipment and facilities will be housed by 2015.  The projects, entailing new investments of USD1 billion, are seen to further benefit the Philippines in energy self-sufficiency and government revenues, and will continue to be a major source of power for Luzon’s energy requirements in the years to come.

Malampaya is one of the largest and most significant industrial endeavors in Philippine history. It is a joint undertaking between the Philippine national government and the private sector  spearheaded by the DOE, and developed and operated by Shell Philippines Exploration B.V. on behalf of joint venture partners Chevron Malampaya LLC and the PNOC Exploration Corporation under SC38.

Production of natural gas to fuel three gas-fired power stations with a combined capacity of 2,700 MW commenced in October 2001 and has been providing benefits including meeting 40-45% of Luzon’s power generation requirements, reduced oil imports, stable supply of energy,  unprecedented government revenues and cleaner source of power.

Anglo Japanese American (AJA) Registrar Philippines, was the team that audited the said Malampaya sites.  The Audit Team headed by Lead Auditor Gilmore Rivera recommended Malampaya-operator Shell Philippines Exploration (SPEX) for continuous certification for having zero non-conformance, which proves the company’s application of effective systems to control its environmental impact and constantly improve performance in a systematic, effective and sustainable manner.

SPEX’s zero non-conformance was made possible by the managers and staff of its Operations, Maintenance, Legal, C&P, IMT and HR departments, under the direction of HSE and SD Manager Joey Tinga and ISO 14001 Focal Dar Guamos.

The increased monitoring of its effluent or outflow of water and gas, the reduction of hydrocarbons being flared, and the continuous partnership with the government for the establishment of appropriate offshore standards, are a few of the more recent measures adopted by SPEX with the aim of improving the environmental impact of its operations.

The International Organization for Standardization (ISO) is a global network that identifies what International Standards are required by business, government and society. For consumers, conformity of products and services to these standards provide assurance about their quality, safety and reliability. The International Standards on air, water and soil quality, as well as on the environmental impact of products and the companies that produce them, contribute to the cause of preserving the environment.

The fundraiser known as “Project IC – Bagong Gusali”, aims to furnish the rooms of the new Teaching and Research Building, located within the 22-hectare National Science Complex and Technology Incubation Park (NSCTIP) in the state university’s main campus in Diliman, Quezon City.

Malampaya adopted five Laboratory Rooms in the said location, through the fundraiser’s Adopt-A-Room Donation Scheme.  The U.P. Institute of Chemistry, for its part, shall actively assist MFI should the foundation need the Institute’s expertise for analytical and technical services, as well as in research.

UPCAF  Director Florian del Mundo, UPCAF Chairman Renan M. del Rosario, MFI Executive Director Luke Esteban and SPEX Managing Director Sebastian Quiniones formalized the donation by signing a Memorandum of Agreement in June 2011.  U.P. President Alfredo Pascual graced the occasion.

It is hoped that this contribution would foster the growth of the Philippines’ scientific endeavors in the field of Chemistry. (SPEX Communications)

Members from the UPCAF, Shell and Malampaya Foundation formalized the donation through the signing of the Memorandum of Agreement in June 2011.  Among the guests were UPCAF Director Florian del Mundo (seated, 3^rd from left), UPCAF Chairman Renan M. del Rosario (seated, 4^th from left), MFI Executive Director Luke Esteban (seated 4^th from right), SPEX Managing Director Sebastian Quiniones (seated, 2^nd from right), SPEX External Affairs Manager Karen Agabin (seated, rightmost) and Shell GM for Communications Bobby Kanapi (standing, rightmost).

The three-day seminar began at the Red Cross office in Hilltop, Batangas City, where 19 volunteers from the community were trained in first aid, basic life support, and emergency preparedness. The seminar culminated with a simulation exercise where the participants had to demonstrate a rescue operation of victims in a staged motor vehicle accident.

The 30-minute simulation was carried out in the street in front of the barangay hall of Brgy. Sta. Rita Karsada. Several trainees carried out the rescue while others were in charge of crowd and traffic control. After the activity, a graduation ceremony was held at the barangay hall where the volunteers were handed their certificates.

MFI Executive Director Luke Esteban attended the event with the whole MFI Team-Batangas. The Batangas chapter of the Philippine National Red Cross headed by Paul de Castro, and volunteers from NEST- Ambulong and Buklod Unlad ng Batangas, Inc., were also present at the gathering.

Barangay Chairman Marcing Ilagan extended his gratitude to MFI for bringing the NEST Programme to their Barangay. Grace Cantos, one of the volunteers of NEST-Ambulong, shared her experiences and how the programme has helped them and their community. MFI also presented the barangay with some much needed first aid equipment at the event.

NEST strikes again: Helping flood victims in Batangas
Last June 8 and 9, 2011, heavy rains brought about by Typhoon “Dodong” caused heavy flooding in Batangas. This prompted the evacuation of families from their homes near the waterlines particularly in the areas of Libjo, Sta. Rita Karsada and Cuta.

Fresh from their NEST training, the volunteers from Sta. Rita Karsada were mobilised to assist in the evacuation in their barangay. Simultaneously, the NEST groups from Ambulong and San Isidro were posted in their respective areas to monitor and assist their neighbors. In times of a crisis such as this, the NEST volunteers are the chosen front liners to help those in need.

During the celebration of Shell Safety Day, members of the Ambulong team set up a booth and joined the safety exhibit to showcase their equipment and first-aid materials for emergency situations and were commended by the city government of Batangas. City Administrator Philip Baroja said there might be more NEST groups set-up in other communities within the city.

Since its launch in 2007, NEST has been one of the regular programmes of the Malampaya Foundation, Inc. (MFI) in Batangas City. It had partnered with the Emergency Research Center, Inc. and this year, NEST joined forces with the Batangas Chapter of the Philippine Red Cross.

With the support of local government officials, NEST aims to organise communities to help them identify, train and plan for emergency prevention, mitigation and response. Volunteers from these communities are trained in first aid, basic life support and emergency preparedness, eventually building their capabilities to provide assistance in times of crisis, and to contribute to the safety and security of the community they live in.  [SPEX Communications]

Using popular language that can be better understood by the children, the recent interactive mobile exhibit dubbed, “The Energy Down Below” was simultaneously mounted for six weeks in all the eight schools participating in the Shell CSP- The New Energy Future advocacy project. The advocacy is done in able partnership with the Department of Education and Marylindbert International.

The mobile educational exhibit made the rounds of participating schools like the J. Zamora Elementary School in Pandacan, Manila; P. Gomez Elementary School in Sta. Cruz, Manila; Makati Elementary School in Makati City and Timoteo Paz Elementary School in Pasay City in the National Capital Region.
In the Calabarzon area, participating schools included the Batangas City East Central Elementary School in Batangas City; Tabangao Elementary School in Batangas City; Claro M. Recto Memorial School in Lipa City and Padre Valerio Malabanan Memorial School in Lipa City.

The interactive and educational exhibit came in two parts. The first was a 10-minute video of “The Malampaya Journey”, which explains how the multibillion-dollar Malampaya natural gas project came to be and how Filipinos are benefitting from it. The other part is a simulation game, explaining how petroleum and natural gases are formed. The Malampaya natural gas field off Palawan is being operated by a consortium that includes Shell Philippines Exploration B.V. (SPEX), the Department of
Energy, Chevron Malampaya LLC and the Philippine National Oil Company- Exploration Corporation—and is now contributing vital fuel to produce electricity.

“From the exhibit, I have learned to use less electricity so we can burn less fossil fuel and decrease the smoke destroying the ozone layer,” says Ron Martin Robles, a student of Timoteo Paez Elementary School in Pasay City.

Lorylaine Panog, a schoolmate of Robles added, “I think that the workers of the Malampaya gas project are very hardworking. I am very proud of them because they are smart. I promise that I will not waste gasoline. I will say to other people that they should not waste gasoline because it is hard to make.”

The students also learned from the exhibit the importance of the symbiotic relationship between man and nature.

All the principals of the participating schools were very happy with the exhibit of the Shell CSP- The New Energy Future. They said the exhibit brought countless joys and discoveries to their pupils who are interested in the field of science and technology.

The New Energy Future was anchored on Pilipinas Shell’s steadfast belief that to effect a significant change in the way Filipinos view large concepts such as energy, fossil fuels and the environment- which are also taken for granted- it should start with the youth.

According to Roberto Kanapi, Pilipinas Shell Vice President for Communications, The New Energy Future “aims to inculcate and reinforce student’s knowledge and skills on the importance of taking care of the environment, fossil fuels, value of energy and the need to conserve it and climate change and the ways to help minimise it.”

Under the New Energy Future programme, which was launched July last year, Grade 3 and Grade 4 students from the initial eight public schools will learn various ways of taking care of the environment. They will be taught the importance of fossil fuel; the value of energy and the need to conserve it; and the reality of climate change and how it can be addressed.

Shell, Kanapi said, is only too happy to be part of this advocacy to shape the minds of the youth in the proper care of the environment by teaching them how to conserve energy. It is hoped that by imparting such life lessons on the youth, they will be part of a new generation of Filipinos who are aware of the importance of energy and a new breed of students who can contribute in their own way to the responsible use of scarce energy,” Kanapi said.

He added that the programme has never been more timely considering that there is a very real possibility that the world will hardly have enough fossil fuels to meet the ever growing demand of factories, homes, industries and cars by a global population that continues to increase at a fast pace, especially in developing countries like the Philippines.

Kanapi said, “There is a compelling need for everyone to be aware how valuable energy is. The world population continues to grow but energy is non-renewable and is getting depleted. It’s time we use energy wisely and well.”

With the children learning to do just that through the New Energy Future programme, then a future that is sustainable and prosperous is becoming imminent to besafe in their hands. [Bum D. Tenorio, Jr.]

* As published in Philippine Star Business As Usual Section on April 11, 2011 (Page D-1)

Public grade school students learn about caring for the environment through Shell’s interactive exhibit called, “The Energy Down Below.”