Prime Energy Set to Boost Gas Production with New Malampaya Wells by 2026

Prime Energy Resources Development B.V., led by tycoon Enrique Razon, is accelerating its efforts to drill two new deepwater wells at the Malampaya natural gas facility, targeting production commencement in 2026. These efforts, termed “Malampaya Phase 4,” involve the Camago and Malampaya East wells and hinge on successful drilling and the confirmation of commercially viable gas reserves. This ambitious project requires a substantial investment exceeding $600 million, with $187 million allocated for 2024 alone.

Significant to this endeavor was the renewal of the Malampaya SC 38 contract by President Ferdinand Marcos Jr. in February, extending the gas field’s production period until 2039. The consortium leading SC 38, including Prime Energy, UC38 LLC, and the Philippine National Oil Company-Exploration Corp. (PNOC-EC), views this renewal as an opportunity to further explore and develop additional gas reserves.

To support these extensive developments, Prime Energy and its partners are seeking assistance from the Department of Energy (DOE) for market assurance for the new gas volumes and streamlining governmental permits and requirements. This support is crucial for the timely and cost-efficient completion of Malampaya Phase 4.