The Malampaya consortium led by Prime Infrastructure Capital Inc. of businessman Enrique Razon Jr. is on schedule in its work program which includes the drilling of two new wells.
“The good news that was shared with the President yesterday, by the Malampaya consortium is that we are on track to having the first drilling for the nearby fields by the end of 2024, and we are looking forward to new or additional supply from the same service contract by 2026,” said Energy Secretary Raphael Lotilla during the the Pandesal Forum at Kamuning Bakery in Quezon City.
Lotilla said this strong investor confidence reflects the government’s commitment to achieving and maintaining energy security and independence for the country.
“This good news is important in terms of encouraging more investments in exploration in the oil and gas sector,” he said.
President Ferdinand Marcos Jr. renewed and extended the Malampaya Service Contract 38 from Feb. 22, 2024 until 2039.
“Ever since [President Marcos] assumed office, he has committed the energy sector towards stabilizing the investment environment…We were able to extend or renew the service contract,” Lotilla said.
The 15-year renewal of SC 38 allowed Prime Infra subsidiary Prime Energy Resources Development B.V. to carry out drilling beyond the existing production area of the depleting gas field.
“The conduct of exploratory drilling further away from the Malampaya production area within the service Contract is a requirement for the SC 38 consortium to retain the exploration areas,” said Lotilla.
The DOE required the SC 38 consortium to submit a minimum work program involving geological and geophysical studies and the drilling of at least two deep water wells during the sub-phase 1 from 2024 to 2029.
The consortium is led by Prime Energy, UC38 LLC and PNOC-Exploration Corp.
Prime Energy is the gas operator and has a 45-percent stake in the project. UC38 also has a 45-percent stake, while PNOC-EC owns the remaining 10 percent.
The DOE said the consortium’s work program is “geared towards unlocking the potential both in the existing gas field and nearby prospect areas to provide incremental production.”
The Malampaya field’s best estimate for the near field is an additional 210 billion cubic feet of gas.
