Prime Energy awards major contract for Malampaya Phase 4 drilling

Tycoon Enrique Razon’s Prime Energy Resources Development B.V., the operator of the Malampaya natural gas facility, has awarded to a Houston, Texas-based company a major contract that will allow it to begin drilling of two new deep water wells at the offshore gas field.

In a statement on Tuesday, Prime Energy said it awarded OneSubsea a contract to supply wellheads, control equipment, and subsea production systems.

The company said the contracted equipment from OneSubsea will be used for “Malampaya Phase 4,” which involves drilling of two new deepwater wells in the Camago and Malampaya East fields. 

Prime Energy is targeting to start drilling in 2025 with the aim of producing new gas by 2026.

In February 2023, President Ferdinand Marcos Jr. signed the renewal agreement for the Malampaya SC 38, allowing the continued production of the gas field for another 15 years.

The SC 38’s 25-year production contract, set to expire on February 22, 2024, was renewed until February 22, 2039.

SC 38 is held by the Malampaya Consortium led by Prime Energy, along with UC38 LLC and the state-run Philippine National Oil Company-Exploration Corp. (PNOC-EC).

Prime Energy said it is also set to award other major contracts for deepwater drilling units, specialized pipeline manufacturing, integrated well services, among others, subject to partner approval by UC38 LLC and PNOC-EC in the coming weeks. 

Apart from the two new wells, Prime Energy is also eyeing a third well called “Bagong Pag-asa,” but is subject to approval by its consortium partners.

The company said the exploration well will determine the presence of oil and gas in a structure approximately 15 kilometers from the Malampaya field, hopefully to further extend the flow of indigenous gas for the benefit of the Philippines. —VAL, GMA Integrated News