Prime Energy, together with the Department of Energy (DOE) and Service Contract 38 (SC 38) consortium partners, said it is advancing the next subphase of development under the Malampaya service contract with the Bagong Pag-Asa exploration drilling to strengthen the Philippines’ energy security and sustainability.
Set to commence drilling in 2025, ahead of the initial commitment of 2030 under the Subphase 2 requirement of the contract renewal, Bagong Pag-Asa marks a landmark development for the Philippines as it will be the first offshore exploration well drilled in the country in over a decade.
“President Ferdinand Marcos Jr. and DOE Secretary Raphael Lotilla firmly recognized the criticality of indigenous gas when the SC 38 renewal was signed last year, mandating the consortium to extend the life of Malampaya. Backed by our team’s expertise and strong government support, we are committed to delivering on that goal, which is why we are ahead of schedule with our drilling progress,” said Prime Energy.
Prime Energy engaged Noble Drilling for the provision of the drill rig and SLB for formation evaluation services, ensuring the technical expertise and resources necessary for the successful execution of the Bagong Pag-Asa drilling.
“With Bagong Pag-Asa, we’re not just fulfilling our obligations as a service contractor to the government; we’re helping ensure the long-term sustainability of the Philippines’ energy sector. Our efforts extend beyond exploration to laying the groundwork for future generations and setting new standards in offshore energy development,” the company said.
Prime Energy, a wholly owned subsidiary of Razon-led Prime Infra, is the operator of the Malampaya gas field, the only indigenous gas source in the Philippines.
Under the renewal agreement signed by President Ferdinand Marcos Jr. for Malampaya Service Contract No. 38 (SC 38), Prime Energy and the other consortium members—Philippine National Oil Company-Exploration Corporation (PNOC-EC), UC 38 LLC, and Prime Oil and Gas Inc. (Prime Gas)—committed to significant drilling activities starting next year, with aim to deliver new gas by 2026. Part of this drilling includes Malampaya Phase 4, which focuses on development wells in the existing Camago-Malampaya fields.
The DOE earlier granted certificates of Energy Project of National Significance (EPNS) to both Malampaya Phase 4 and the drilling of Bagong Pag-Asa.
According to Prime Energy, if the Bagong Pag-Asa project is proven to have commercially viable reserve, appraisal and/or development wells will be drilled within the next two to three years which will be tied back to the Malampaya.
