The Malampaya East-1 gas discovery also contains condensate, a high value fuel oil which can be used as refinery feedstock, further ensuring the country’s energy security.
The government confirmed a significant gas and condensate discovery at the Malampaya East-1 well, describing the find as a “crown jewel” in its efforts to revitalize the domestic energy sector. The field is estimated to contain 98 billion cubic feet of natural gas.
The Department of Energy said the discovery is the first 100-percent Filipino-led upstream venture to achieve such a milestone.
The Malampaya East-1 well is part of the Service Contract 38 drilling campaign, which aims to extend the life of the country’s primary source of indigenous fuel.
Department of Energy Undersecretary Alessandro Sales confirmed the presence of condensate—a high-value fuel oil used as refinery feedstock, but said the exact potential of the find is still being determined. Initial estimates for the broader Malampaya field suggest it may contain up to 85 million barrels of condensate.
President Ferdinand Marcos Jr. welcomed the development as a critical step toward strengthening national energy security and reducing the country’s reliance on imported fuels.
The administration previously extended the Service Contract 38 agreement until Feb. 22, 2039, to address the depletion of existing reserves and encourage new exploration.
Prime Energy Resources Development B.V. operates the contract alongside partners UC38 LLC, PNOC Exploration Corporation and Prime Oil and Gas Inc. Two other wells, Camago-3 and Bagong Pagasa-1, are currently being drilled with initial results expected by the end of the quarter.
Department of Energy Secretary Sharon Garin said the discovery was delivered in record time following presidential orders to prioritize energy independence. Garin noted that the government is maintaining a transparent regulatory environment to attract responsible investment into the sector.
The government has awarded nine major service contracts to date, ending years of stagnation in the industry. These contracts include production at the Galoc Field and exploration in the West Philippine Sea and Sulu Sea, attracting more than $200 million in pledged investments.
In addition to traditional fossil fuels, the Philippines is exploring clean energy alternatives. The Department of Energy recently awarded two service contracts for native hydrogen exploration in Central Luzon, representing the first competitive bid round of its kind globally.
To support long-term growth, the government has secured funding for the Philippine Gradiometry and Seismic Survey Project. The nationwide initiative is designed to provide the geological data necessary for future bidding rounds and ensure the continued momentum of the country’s upstream energy revitalization.
