Prime Energy exceeds target for Malampaya

MANILA, Philippines — Prime Energy Resources Development B.V. of tycoon Enrique Razon has surpassed its target output for the Malampaya deep water gas-to-power project in the second quarter.

Prime Energy said gas sales from April to June reached 280 million standard cubic feet per day (MMSCFD), exceeding its target of 274 MMSCFD.

The company cited efficient maintenance activities and integrity of equipment in the Malampaya project as driving forces that contributed to the high sales achievement.

In turn, the high sales fulfilled the usual high gas demand during summer.

“We are very proud of the excellent performance of the asset, enabled by the tireless commitment, ingenuity and proven capability of Prime Energy employees,” Prime Energy general manager Donnabel Kuizon Cruz said.

“We remain committed to being the partner of choice in providing energy sufficiency and security to the country,” Cruz said.

Prime Energy said the results show its capability and competence in operating and maintaining the Malampaya project to harness natural gas and provide safe, reliable, and clean energy to Filipinos.

At present, Malampaya supplies natural gas to power four generation plants in Batangas, with a combined capacity of 2,011 megawatts.

“We intend to maintain a reliable supply of indigenous gas to our customers while we continue the hard work of exploring for new sources to address the natural decline of the Malampaya gas field,” Cruz said.

The Service Contract 38 or the Malampaya consortium is composed of Prime Energy as operator and UC38 LLC of the Udenna Group and state-run Philippine National Oil Co.-Exploration Corp.

Prime Energy owns the 45-percent operating interest in SC 38, or the Malampaya deep water gas-to-power project, which supplies 20 percent of Luzon’s electricity requirements.

President Marcos approved the renewal of SC 38 last May, extending the project for another 15 years until February 22, 2039.

The consortium is looking to invest about $600 million in its bid to further explore and utilize the remaining gas reserves in the Malampaya gas field.

Under SC 38, the Malampaya consortium will remit 60 percent of net proceeds from petroleum operations to the national government.

The consortium has remitted more than $13.14 billion from October 2001 to December 2022.