Gas Production from New Malampaya Wells Expected by 2026 — Prime Infra

Razon-led Prime Infra and its natural gas exploration subsidiary, Prime Energy, reaffirmed their commitment to drilling new deepwater wells at the Malampaya natural gas facility next year, with commercial gas production slated for 2026.

In a news release, Prime Infra President and CEO Guillaume Lucci emphasized ongoing preparations for Phase 4 drilling. The company plans to drill two new wells, Camago and Malampaya East, starting in 2025 and aims to produce new gas by 2026. The Prime group is allocating over $600 million for this phase.

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

Prime Energy’s Managing Director and General Manager, Donnabel Kuizon Cruz, highlighted the engineering challenges involved in exploring and developing new wells. “The pressure in the existing reservoir is decreasing, and the only way to boost production is to drill new wells in the same reservoir. We’re ready to commence drilling in 2025, with new gas expected by 2026. This will not only increase gas production but also extend the platform’s lifespan through maintenance activities,” Cruz explained.

Service Contract 38 (SC 38) or the Malampaya gas field, initially set to expire in February 2024, has been renewed until February 22, 2039, allowing an additional 15 years of production. SC 38 is held by the Malampaya Consortium, which includes Prime Energy, UC38 LLC, and the state-run Philippine National Oil Company-Exploration Corp. (PNOC-EC).

Senator Pia Cayetano, chairperson of the Senate Committee on Energy, recently visited the Malampaya platform, situated 50 kilometers off the coast of Palawan. She underscored the importance of such investments for energy security and reliability. “When you have your own source of gas, it provides more security. My priority is ensuring that our country has a steady power supply,” Cayetano remarked.

The Malampaya Deepwater Gas-to-Power project is the Philippines’ first and only indigenous gas resource, contributing about 20% of Luzon’s electricity needs since 2001. This project has significantly bolstered the nation’s energy independence.

“Our next big challenge is exploration and ensuring energy supply for the next 15 to 20 years. Our current supply is based on plans made 20 to 30 years ago. It’s about long-term planning, and I hope to contribute to this discussion through policymaking,” Cayetano added.