MANILA, Philippines — Prime Energy Resources Development B.V. of tycoon Enrique Razon has signed a supply agreement with Abu Dhabi National Oil Company Global Trading (AGT) for condensate to be produced at the Malampaya gas field.
AGT is a joint venture between oil company ADNOC, Italian energy company Eni S.p.A., and the Republic of Austria.
Prime Energy said the agreement covers the period of March 1, 2023 to Feb. 23, 2024.
The supply agreement positions Prime Energy as a petroleum company with the expertise and business practices that meet global industry standards.
“This agreement with AGT establishes our force in the global petroleum industry, and we are privileged that AGT, one of the top oil companies across the globe, has decided to partner and grow with us,” Prime Energy managing director and general manager Donnabel Cruz said.
“Prime Energy and AGT share the same responsibility of harnessing our natural resources to transform societies around the world by providing resilient infrastructure to create a better future,” she said.
Prime Energy is the main operator of the Malampaya deep water gas-to-power project in offshore northwest Palawan.
Alongside natural gas, it also extracts and exports condensate, which is primarily used as refinery feedstocks for motor and heating fuels.
“With a growing range of customer base, including foreign industry players, Prime Energy ensures a steady supply of energy in the country while making significant contributions to stakeholder communities through sustainable social and environmental programs,” the company said.
Prime Energy, a subsidiary of Razon’s Prime Infrastructure Capital Inc., is a natural gas exploration and development company that operates the Malampaya project.
It is joined by UC38 LLC of the Udenna Group and state-run Philippine National Oil Co.-Exploration Corp as members of the Service Contract 38 consortium.
The consortium plans to invest about $600 million to further explore and utilize the remaining gas reserves in the Malampaya gas field.
Last May 15, President Marcos signed the renewal agreement for the service contract, extending it for a final 15 years, or until Feb. 22, 2039, to allow for the continued production of the Malampaya gas field.
The Malampaya project is one of the country’s most important power assets, as it produces natural gas to power plants in Batangas City that powers up to 20 percent of Luzon’s total electricity requirements.