John Wood Group (Wood) will deliver asset management services to the $4.5bn Malampaya deepwater gas-to-power project in the Philippines under a new contract awarded by Royal Dutch Shell.
As per the terms of the six-year contract, the Scottish energy services company will be responsible for providing maintenance services, modifications and shutdown support for the Malampaya project.
The contract covers Shell’s onshore facilities located in Batangas and offshore assets in the Malampaya gas field, located in the Service Contract 38 license area, 65km northwest of the Palawan Island.
Wood said that the contract for the Malampaya deepwater gas-to-power project will be executed with the support of its established local presence in Manila and also its regional upstream hub in Kuala Lumpur. The company expects to create 60 new positions to fulfill the contract requirements.
Wood CEO Robin Watson said: “This win is a powerful example of a revenue synergy achieved by the combination of Amec Foster Wheeler and Wood Group’s broad capabilities and depth of experience.
“As Wood, we bring together our successful track record and local knowledge developed from working on these offshore assets and onshore gas plant, and our strong global operations and maintenance expertise.
“The contract also grows our operations and maintenance business in the region, expanding our footprint in south-east Asia and creating new and enhanced opportunities for the local workforce.”
Wood has been associated with the Malampaya deepwater project since 2001 when it had delivered integrity management of subsea pipelines. The energy services company also provided the front-end engineering design, and engineering, procurement and construction of the onshore gas plant of the offshore project in the late 1990s and early 2000s.
The natural gas sourced from the Malampaya deepwater gas-to-power project is used as fuel to provide 3,200MW of electricity to cover about 30-50% of the power generation requirements of the Philippines.
The Malampaya deep water gas-to-power project is made up of two components – $2bn Malampaya upstream gas project and the Malampaya downstream gas project valued at $2.5bn.