PRIME Energy Resources Development B.V. on Tuesday said it was on track to bring the Malampaya Phase 4 wells to production by the fourth quarter as it welcomed President Ferdinand Marcos Jr.'s recognition of the gas field’s contribution to the country's energy security.
Prime Energy is the natural gas exploration and development company of Prime Infrastructure Capital Inc. and is the operator of Service Contract 38 (SC 38) for the Malampaya deepwater gas-to-power project.
"The extension of SC 38 provided the regulatory certainty needed to resume exploration and drilling activities in Malampaya,” the company said in a statement.
“We also thank the Department of Energy for its support and look forward to bringing the Phase 4 wells, namely the Malampaya East-1 and Camago-3 wells, into production later this year to help sustain the country's indigenous gas supply,” it added.
In his State of the Nation Address on Monday, Marcos recognized the Malampaya gas field as a key pillar of the country's energy security, describing the latest natural gas discovery under the Phase 4 wells as a "national treasure" that would help sustain indigenous energy production for years to come.
"What we have uncovered is truly a national treasure. These newly discovered reserves are sufficient to supply electricity to approximately 1.6 million households over the next eight years," Marcos said in his speech.
The reserves were identified through the Malampaya Phase 4 drilling campaign being undertaken by the SC 38 consortium led by Prime Energy, which holds a 40 percent interest. Its partners include UC38 LLC (45 percent), PNOC Exploration Corp. (10 percent), and Prime Oil and Gas Inc. (5 percent).
Prime Energy said the recently drilled Malampaya East-1 and Camago-3 reserve wells were scheduled to deliver first gas later this year.
The recently drilled wells under the Malampaya Phase 4 project, including the soon-to-be drilled Bagong Pag-asa 1 well, are estimated to hold a combined 222 billion cubic feet of natural gas. The additional wells are expected to extend the operational life of the Malampaya gas field by about six years.
