Gas production from new Malampaya wells seen 2026 —Prime

Razon-led Prime Infra and its natural gas exploration arm Prime Energy, the operator of the Malampaya natural gas facility, reiterated their commitment to drill new deep water wells at the offshore gas field next year and produce commercial gas come 2026.

In a news release, Prime Infra president and CEO Guillaume Lucci said preparations for the Phase 4 drilling are continuous as the company and its unit prepare to drill two new wells in the Malampaya gas field starting 2025 and produce new gas by 2026.

The two new wells are named Camago and Malampaya East.

Prime group is earmarking more than $600 million for the Phase 4 drilling.

“We remain committed to supporting the Department of Energy’s initiatives to enhance the development of the country’s indigenous fuel resources the idea being that gas is a natural transition fuel as the Philippines moves towards renewable energy,” said Lucci.

Prime Energy managing director and general manager Donnabel Kuizon Cruz said that exploration and development new wells requires “extraordinary feats of engineering.”

“The pressure of the gas in the existing reservoir is going down and the only way to increase the production again is to drill new wells in the same reservoir....We’re more than ready to do it. The plan is to drill in 2025 for the new gas to come in 2026. We’re not just increasing gas production but extending the life of the platform as well through maintenance activities,” said Cruz.

The Service Contract 38 or Malampaya gas field, which was originally set to expire in February 2024, was renewed until February 22, 2039 allowing the continued production from the gas field for another 15 years.

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 group said Senator Pia Cayetano, chairperson of the Senate Committee on Energy, made a visit to the Malampaya platform situated 50 kilometers off the coast of Palawan.

“When you experience this [visit] and you see the kind of investments that goes into ensuring energy security and energy reliability. Reliability is you will have power 24/7, security is when you have access, and that is where indigenous [gas] comes in,” Cayetano said.

“When we have our own source, that gives us more security. It’s very simple...Kung ako ang tatanungin mo, ‘yan ang priority ko. Yung security natin na ang bansa natin, hindi mapipilay dahil wala tayong kuryente,” she added.

The Malampaya Deepwater Gas-to-Power project is the country’s first and only indigenous gas resource off the province of Palawan. 

It supplies about 20% of Luzon’s electricity needs and has significantly contributed to the nation's energy independence since 2001.

“Our next big challenge is exploration and ensuring energy supply for the next 15, 20 years. Because our supply now is based on the planning that was done 20 to 30 years ago...It’s about planning long-term. That’s what I hope I can bring to the discussion and help by way of policymaking,” Cayetano said.—RF, GMA Integrated News