Prime Energy eyes new gas blocks beyond Malampaya

RAZON-LED Prime Energy Resources Development B.V., operator of the Malampaya gas field, said it is exploring potential areas beyond the country’s main natural gas source to help firm up power supply.

Prime Energy President and Chief Executive Officer Donnabel Kuizon-Cruz said the company is studying opportunities to explore additional blocks aside from Malampaya.

“We were still looking at other blocks that we could potentially explore. So we’re not focused on just one area. And of course, every year, we refresh our work program budget to see where we want to go next,” Ms. Kuizon-Cruz told reporters on Tuesday.

The Malampaya consortium — composed of Prime Energy Resources Development B.V., UC38 LLC, Prime Oil & Gas, Inc., and state-owned PNOC Exploration Corp. — is undertaking an $893-million Malampaya Phase 4 (MP4) project to extend the life of the gas field.

The Malampaya Deep Water Gas-to-Power Project spans 337,676 hectares offshore Palawan and supplies up to 13% of Luzon’s electricity requirements.

Prime Energy earlier said it had completed drilling and testing two wells — Malampaya East-1 (MAE-1) and Camago 3 — confirming the presence of natural gas reserves.

MAE-1, located about five kilometers east of the existing Malampaya field, is estimated to contain about 98 billion cubic feet of gas, while Camago 3 is estimated to hold up to 60 billion cubic feet of gas.

The company said these wells could extend the operating life of the Malampaya gas field by about six years, supporting continued supply of indigenous natural gas to the Luzon grid.

“We’ve tested these wells and we’ve proven there’s gas that we can produce to maintain the Malampaya plateau for at least six years. So that is already a major milestone,” Ms. Kuizon-Cruz said.

“And now, immediately after that, we’ve started laying the pipes that would connect these wells to the platform,” she added.

Following the completion of the two wells, the consortium is preparing to drill the Bagong Pag-asa exploration well, located about 30 kilometers north of Malampaya.

Ms. Kuizon-Cruz said the company remains on track to deliver first gas from the MP4 development by the fourth quarter of 2026.

“It’s on track. It’s going very well so far. So as long as we continue on this track, we remain on schedule. We should be able to meet the Q4 2026 promise,” she said.

The MP4 project has been certified by the government as a project of national significance. Since its inception, the Malampaya project has generated more than $14 billion in revenues for the government and reduced reliance on imported fuels. — Sheldeen Joy Talavera