New oil project to ease RP burden

New oil project to ease RP burden

MANILA (AP): The Malampaya natural gas power project near the
western Philippine island of Palawan should help reduce the
country's dependence on imported oil by at least 25 percent in
less than two years, energy officials said Tuesday.

Energy Secretary Mario Tiaoqui said the project should bring
in revenues of around US$400 million yearly once operations start
at the end of 2001. The government also expects annual foreign
exchange savings of $500 million to $600 million because of
reduced oil imports.

Based on initial drilling at the Palawan oil field, the
government expects the Malampaya project to result in an initial
production of around 25,000 barrels of oil daily by the second
half of 2001 and 50,000 barrels daily in the future.

Considerable amounts of natural gas have also been found.

The Malampaya project is operated by Shell Philippines
Exploration B.V.

The Philippines imports virtually all of its petroleum, unlike
Southeast Asian neighbors such as Indonesia and Brunei, which
produce large amounts of oil.