Republic of the Philippines

Batangas State University

College of Engineering, Architecture and Fine Arts

Petroleum Engineering Department

Malampaya Project: A Movie Review

Submitted by:

Anciado, Kezia D.

PetE-5106

Submitted to:

Engr. Melannie P. Adante

Instructor

December 06, 2019

 CHAPTER I
Introduction

The Malampaya Deep Water Gas-to-Power project is one of the largest and most
significant industrial endeavors in Philippine history. A joint undertaking of the Philippine
national government and the private sector, the project is spearheaded by the
Department of Energy (DOE), and developed 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.

It has a US $4.5 billion joint venture of the Royal/Dutch Shell subsidiary Shell
Philippines Exploration (SPEX), Chevron Texaco, and the Philippine National Oil
Company (PNOC)—is the largest industrial investment in the Philippines.

The project extracts natural gas from below the seabed off the coast of Palawan
Island and transports it more than 500 kilometers by undersea pipeline to a natural gas
refinery plant in Batangas City on Luzon Island. Malampaya began commercial
operations in January 2002. With total reserves of 3 trillion cubic feet, the project is
expected to produce 400–450 million cubic feet of gas per day for over 20 years.

Since it began commercial operations in 2001, the Malampaya project has

produced cleaner-burning natural gas which supplies five power plants in Luzon, the
country’s largest island, with a combined capacity of 3,200 megawatts.

Malampaya is benefiting the country in countless ways, including reducing oil imports,
ensuring a more stable supply of cleaner energy from an indigenous resource and
meeting up to 30% of the country’s energy requirements.

In 2013, the company embarked on Malampaya Phases 2 and 3, which aimed to

maintain the level of gas production to fulfill commitments under existing gas sales
agreements, thus ensuring the steady supply of natural gas to power the Luzon
electricity grid.
 Two additional production wells were successfully installed in 2013 to signify the
completion of Malampaya Phase 2. In 2015, Malampaya Phase 3, which involved the
design, fabrication and installation of a new Depletion Compression Platform,was
completed. This is the first offshore platform to be fully built in the Philippines, thus
enhancing local employment opportunities and bringing technical expertise into the
country.

The refined gas from the Malampaya project feeds a separate pipeline
projectthat supplies three gas turbine power plants in Batangas province. These plants
are expected to supply Luzon with a total of 2,700 megawatts of electricity—over 30
percent of the Philippines’ total power demand. SPEX and ChevronTexaco each owns
and financed percent of the project, and PNOC owns and financed the remaining 10
percent. The project sponsors expect to earn US $6.7 billion from Malampaya—US $3
billion each for SPEX and ChevronTexaco, and US $0.67 billion for PNOC.

In addition, the Philippine government is expected to earn at least US $10 billion

through a ―service contract‖ that entitles it to 60 percent of net project revenues. SPEX
operates and manages the project on behalf of its partners, and was responsible for
bringing the project online. Construction commenced in 1998 and entailed large-scale
operations in four different provinces.
 CHAPTER II
Film Review

As I watch the film, learning about different aspects of Malampaya has been
presented. Among these learning are the discovery, project execution, and their social
and environment responsibility.

In 1991, Shell discovered the reserves in Malampaya. It is also recognized as the

biggest investment as for now of the Philippines, a total of 4.5 billion dollars. They also
build a 504 km pipelines can transport the hydrocarbons from the Malampaya to the
east of Mindoro, and lastly to Batangas, to provide energy to the 40-45% of Luzon. This
pipeline length is a no joke for the planning department and engineers. Malampaya
cares for social and environmental responsibility and sustainable development so they
make sure that the environment and the people’s source of income around will not
suffer. They make sure that the pipelines were laid away from the reefs and the the
people for safety. Instead of having a shorter route that will destroy the ecodiversity in
both Mindoro and Palawan, they take the longer route that is safer.

In line with this, they sent community workers for the social and medical
responsibility. One of them is Eva Malabanan. She is community organizer assigned to
Southern Palawan. Her mission is to educate the people of Palawan about the malaria,
which is the biggest problem in Palawan. The program Kilos Laban Malaria (Movement
against Malaria) was established in 1999 by the local government, people, and Shell.
According to Mrs. Eva and the others members of Kilos Laban Malaria, helping others is
not just a job, but a responsibility. A malaria free Palawan in envisioned in the year
2020, from 1999 to 2001, there has been a decrease of over 30% in the incidence of
malaria related deaths. The Kilos Laban Malaria program is fast gaining recognition for
a sustainable, community-based health program in the area of combating fatal disease.

They also have Mr. Jessie Abrogar which isa young farmer that already built his
own at the age of 21. With the dream of finishing school, Jessie was able to finish high
school and college with course in Business Agriculture as a scholar of Shell. His family
is really proud about him, and even her sister idolize his older brother. He is one of the
hundreds of benefices of the Sanayan sa Kakayahan sa Agrikultura (SAKA) program
since 1985. Many of the benefices return to their barangays and local to be successful
farmer, entrepreneur and citizens that will share their gained knowledge to the
community.

We also have William and Sally Corpuz, a couple from Isabela, when in 1991
they decided to bring their family in Palawan. Initially they bought inferior pigs, and
opened a little store, but the pigs died and the store went bankrupt. Integrated Farming
Bio-System of Shell Exploration BV who lend them money and can be paid in
installment basis, and with that the couple started to put plants, fruits and vegetables on
the land, like malunggay and manga, and raised different animals like pigs, chickens,
goats and many others.

With Malampaya Sustainable Development Plan, the barangay had the job to
create new artificial coral reefs for fishes, and also crabs. This program helps those
people whose lives are dependent on the sea. Like Rose Castillo whose boat starts to
catch fish at morning, and return at evening. Her family in Aplaya Mindoro relies on
fishing, to the point that her children cannot go to college due to lack of money and
hunger.

Also, through the help of Mindoro Kabuhayan Foundation Incoported, Shell

Pilipinas Shell Foundation, Rolando who had a fish farm in Pambisan, Oriental Mindoro,
opened a bakery and he was able to buy new belongings and personal things, like a
cellphone for his son. He also bought a boat for business purposes like transportation of
its own foods, since he will be the only one to sell breads with a boat.

Many more locals were helped out by the Shell different programs. The husband
Danny and the wife Minda Evora, are ordinary fishermen from Calapan, Oriental
Mindoro. When their daughter Rose Ann had a disease and needed an operation, the
family was forced to sell everything they have, even their boat, their only source of
income. Rose Ann recovered, but one year after, Danny had an accident. But hope was
not lost because Malampaya and Mindoro Kabuhayan Foundation (MKF) helped the
family to take a loan. With the money, they bought a new boat to help them survive
again. Sister Ravena Dominguez from Calapan, Oriental Mindoro, drives at 120 km/hr
to meet her students from school youth, since she wants to change people’s mind about
education. Sister Ravena, is a member of the Salesians Sisters that recruit people to
teach Technological and Practical Training in Agriculture. According to sister Ravena,
the sisters are not teachers, but allies. If at the beginning, the students knew only about
plating trees and vegetables, now with their own skills they can start their own business.
The students who are able to finish the training was granted a loan after a year to start a
new life.

OFW are heroes, but you don’t need to be an OFW to be a hero. The family of
Jun Caniedo and Emma family tried to sell barbeque with hard work and patience, and
with Micro Financing Program, the old barbeque at the corner of their house, have now
became a big business. The family learnt the value of hard work, and stories like them
shows that you can be a hero of your own family.

Liezel Evangelista, a 16 years old from Isla Verde, Batangas, at 4 am she wakes
up, and at 6 am she leaves the house. She is a daughter of a farmer and has a lot of
dreams for the future. Her life and place are simple and peaceful, but jobs are difficult to
come by, and there’s no electricity, water or pave road. Every day, through mountains
and rivers, she walks 6 kilometers just to go to school. She does it because she knows
there is still hope. Once she finished high school as first honor, she wanted to go to
college, but electricity and money are the main problems. Shell Exploration and
Pilipinas Shell Foundation gave to her school new computers and solar panels. Lack of
knowledge about technology was also a big problem, but once learning the skills, it
became easier. She said that miracle starts from small steps.

Sitio Agusuhin is a small fishing community at Zubic, Zambales. It has a

residence of 200 families, and it does not have jeeps or cars, and only the introduction
of cellphones gave them a little use of technology. During the practice of war, Sitio
Agusuhin was known as ―Green Beach‖, where the people identified as ―bomb
catchers‖, they collected bullets and spent shells by the americans to be sold as scraps.
Samuel Marce was one of them. During the collection, Samuel’s brother died, and in
1991 Subic Bay was closed. Vangie Madul was given a scholarship from Shell
Foundation Scholar to finish college under the course of education with a condition,
once graduated, she have to teach at her own bayan. In 1998, Sitio Agusuhin was
chosen to be the site for the development of the base concrete gravity of the
Malampaya. Rommel Canlas started to be a steel man during the development, and
later on he was promoted to lead man for fabrication. With the introduction of the
programs offered by Shell, Sitio Agusuhin acquired a development plan for a clinic, day
care center and a playground for the children.

The Aeta follow the wind of nature, and decides what animals to catch, and also
plant trees. Bonifacio Florentino is an Aeta, and according to him, if you are born in the
forest, you will die in the forest. Life is connected to each other. At night, in Subic
Forest, thousands of bats freely take fly, but today there are a few bats left. Kap Boni is
now the head of the Bat Rehabitat Reforestation Project, which was launched by Subic
Bay Metropolithan Authority and Pilipinas Shell Foundation in September 22, 1999. The
project aims to save bats from extincting. As for now, the bats amounts to 77,000.
 Chapter III
Conclusion

In line with this film review, I, as a student concluded the following:

 Even a high risk and contentious project can avoid too much opposition
through their programs towards the community and environment.
 The trust of the community around the area is a bigger gain than that of the
financial gain they receive.
 This project is a big help to the community through its projects, in education of
the next generation living there and also to the medical needs.