Malampaya Phase 4 Project Receives ‘National Significance’ Certification

The Razon-led Prime Energy Resources Development B.V.’s Malampaya Phase 4 project has been certified as an Energy Project of National Significance (EPNS) by the Department of Energy (DOE). This certification will expedite regulatory approvals for the project, which aims to drill new deepwater wells in the Malampaya gas field.

The EPNS certification highlights Malampaya’s importance in line with the Philippine Energy Plan (PEP), ensuring faster regulatory processes that are crucial for enhancing the country’s energy security. Malampaya Phase 4 includes drilling the Camago and Malampaya East production wells, as well as the Bagong Pag-asa exploration well.

With an investment exceeding $600 million, the project will allocate $187 million in 2024 for the procurement of drilling and subsea equipment, pipelines, and securing a drilling rig.

Prime Energy President and CEO Donna Kuizon Cruz emphasized the project’s importance, stating, “This milestone reaffirms Malampaya’s role in securing the Philippines’ energy future. As we advance with Phase 4, our focus remains on ensuring sustainable and reliable energy for millions of Filipinos.”

Malampaya, the country’s first and only indigenous gas source, contributes around 20% of Luzon’s electricity needs and has been operational since 2001. It has generated over $13.8 billion in revenues for the Philippine government.

The project is operated under Service Contract No. 38 (SC 38) with consortium partners UC38 LLC, PNOC Exploration Corporation, and Prime Oil and Gas Inc. The contract has been extended until February 2039, ensuring continued production for an additional 15 years.