Malampaya group starts drilling for ‘Phase 4’
The consortium behind the Malampaya natural gas project has stepped up efforts to extend the field’s productive life, having started drilling activities with hopes of extracting more of the deposit.
The Department of Energy (DOE) said that the 7th Generation Drillship Noble Viking arrived in the Bagong Pag-Asa Drill Site, off Palawan Island.
This marked the official start of drilling operations under the Malampaya Phase 4 Project.
This $600-million endeavor involves drilling three new wells: Camago-3, Malampaya East-1 and Bagong Pag-asa-1.
According to the DOE, this will hopefully prolong the gas field’s life and help secure the country’s indigenous energy supply.
DOE officer in charge Sharon Garin said the project’s timely deployment for drilling will help in attaining the goal of delivering “first gas” by the fourth quarter of 2026.
“This development not only strengthens our energy security and reduces our dependence on imported fuel, but also for consumers and supports our industries and jobs,” Garin said.
“This occasion marks a significant moment not only for the SC 38 Consortium but also for the government, and more importantly, for the Filipino people we are committed to serving,” she added.
Garin was referring to Service Contract No. 38, which covers the Malampaya project. The concession period was extended by another 15 years or until February 2039.
The DOE certified the Malampaya Phase 4 Project as an energy project of national significance by the DOE last October. The certification paved the way for faster regulatory approvals.
The Malampaya consortium is led by operator Prime Energy Resources Development BV of the Razon Group.
Its partners include UC38 LLC, PNOC Exploration Corp. and Prime Oil and Gas Inc.
Commissioned in 2001, the Malampaya Deep Water Gas-to-Power Project accounts for as much as 40 percent of Luzon’s electricity demand.
The Malampaya project supplies four power plants in Luzon with a combined capacity of 3,200 megawatts.
Prime Energy earlier said that Malampaya has so far contributed more than $13.8 billion to the Philippine government’s coffers since it began commercial operations.
