THE successful drilling and flow testing of the Camago-3 gas well in Palawan is a boost for the country’s energy security at a time of uncertainty in fuel supply, the Department of Energy (DOE) said late Thursday.
“This is a milestone for Filipino-led engineering and the country’s energy security. Amid the Middle East conflict, this discovery strengthens our domestic gas program, and in turn keeps supply dependable, reducing exposure to global fuel markets, and helping ensure that our energy transition remains affordable and secure for the Filipino people,” Energy Secretary Sharon Garin said in a statement.
Earlier on the same day, President Ferdinand Marcos Jr. broke the news on the achievement at the Malampaya-Camago structure (Service Contract 38), some 80 kilometers off the coast of Palawan.
Camago-3 is part of the $893-million Malampaya Phase 4 (MP4) drilling campaign to extend the life of the country‘s only Indigenous natural gas source. It aims to shield electricity consumers in Luzon from the high costs of imported fuel.
“The successful completion of Camago-3 demonstrates the strength of the Filipino workforce and the close collaboration between government and industry. Delivering results of this scale in less than three years since the renewal of SC 38 is an amazing achievement and reflects what ‘Top Quartile’ performance looks like in the international oil and gas industry. This progress keeps us firmly on track to deliver the first MP4 gas in the fourth quarter of 2026 and opens new opportunities to expand the country’s domestic gas resources,” said Prime Energy Resources Development B.V., the project‘s proponent.
Testing at Camago-3 showed a flow rate of up to 60 million standard cubic feet of gas per day (mmscf/d) or 2.5 times more recoverable gas than the previously discovered Malampaya East-1 well. The combined Camago-3 and Malampaya East-1 wells are seen to extend the life of the Malampaya gas field by about six years.
Electricity from Malampaya costs P4.80 per kilowatt-hour kWh, significantly lower than the P10.30/kWh from imported liquefied natural gas (LNG).
“First gas” delivery from Malampaya is on track by the fourth quarter this year, Prime Energy said, adding that its next step is
drill the Bagong Pag-asa exploration well, 30 kilometers north of the main field.
Prime Energy is a wholly owned subsidiary of Enrique Razon Jr.‘s Prime Infrastructure Capital Inc. (Prime Infra).
