The Department of Energy is looking at the start of drilling of four exploration wells and awarding eight new petroleum contracts this year to boost the country’s oil and gas industry.
“In terms of the near term, this year, there are drilling activities courtesy of our operating partners in Malampaya. So, they have programmed three wells. Two on the near field and one exploration well,” Energy Undersecretary Alessandro Sales said during the Association of International Energy Negotiators Asia Chapter event titled “Challenges and Opportunities in the Philippine Energy Sector.”
“There is also a well on a small discovery in Tindalo in 2024. So, we’re looking to drill four wells in 2025,” Sales said.
Prime Energy Resources Corp., together with the DOE and Service Contract 38 (SC 38) consortium partners, earlier said they were advancing the next subphase of development under the Malampaya service contract.
Prime Energy, a wholly-owned subsidiary of Prime Infrastructure Corp. and the operator of the Malampaya gas field, engaged Noble Drilling for the provision of the drill rig.
The SC 38 consortium committed to undertaking significant drilling activities this year, with aim to deliver new gas by 2026.
Part of the drilling includes Malampaya Phase 4, which focuses on development wells in the existing Camago-Malampaya fields.
Phase 4 entails the drilling of the Camago and Malampaya East production wells, dubbed “Project Sinagtala,” and the drilling of the Bagong Pag-asa exploration well.
Meanwhile, the Tindalo well is under SC 54 operated by Nido Petroleum Philippines.
Sales said the DOE is also optimistic of awarding eight new service contracts in 2025 as these contracts are now with the Office of the President for approval and execution. The Philippines has only 16 active petroleum service contracts.
The DOE held last year the 1st Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) Conventional Energy Bid Round and the 2024 Philippine Bid Round, where six of eight pre-determined areas received valid applications.
Sales said the DOE and its service contractors acquired over 3,000 square kilometers of 3D seismic over two contract areas in 2024.
“So, I think the last seismic survey was in 2013. So, it’s over a decade in coming. But all of these are indications of people willing to spend again for Philippine acreage,” he said.
Sales is also bullish about the native hydrogen exploration and development which received strong interest from investors.