DOE Confirms $893M Malampaya Drilling Set for Completion this Year

MANILA, Philippines — The Department of Energy (DOE) confirmed that the $893-million Malampaya drilling project in offshore Palawan is progressing on schedule, with full completion expected by the end of this year. The project is part of efforts to extend the life of the country’s first and only indigenous gas field.

Energy Secretary Sharon Garin expressed optimism about the project, stating, “Within the year, we will know if there is gas or any resource there. It’s a gamble for the country and for the company, but geologic studies indicate strong potential in these areas.”

The Malampaya Phase 4 (MP4) project commenced in June with the arrival of the Noble Viking drill ship, signaling the start of drilling operations. MP4 involves drilling two deepwater wells, Camago-3 and Malampaya East-1, alongside Bagong Pag-asa-1, a new exploration field. DOE-Energy Resources Development Bureau assistant director Demujin Antiporda confirmed that Camago-3 is expected to be completed later this month or early August, with all drilling developments slated for completion by November.

As one of the Philippines’ largest upstream energy investments in over a decade, MP4 aims to extend the production life of the Malampaya deepwater gas-to-power project and secure a new gas supply by 2026. Currently, Malampaya supplies around 20 percent of Luzon’s electricity needs under Service Contract 38.

Prime Energy Resources Development, led by the Razon Group, operates the contract alongside partners UC38 LLC, PNOC Exploration Corp., and Prime Oil and Gas Inc. The contract has recently been extended until February 2039.

“Prime Energy’s vision has always been to provide long-term energy security to Filipinos and to be a world-class Filipino energy company,” said Donnabel Cruz, Prime Energy president and CEO, during a recent event in Singapore.