Malampaya Phase 4 development certified as project of national significance

MANILA, Philippines — Razon-led Prime Energy Resources Development B.V. has secured national significance certification for Phase 4 of the Malampaya deep-water gas-to-power project worth $600 million.

Issued by the Department of Energy, the certificate of energy project of national significance will offer speedy and systematic issuance of permits and clearances to fast-track the implementation of the Malampaya project.

The project entails the drilling of the Camago and Malampaya East production wells and the drilling of the Bagong Pag-asa exploration well.

Service Contract 38 operated by Prime Energy and consortium partners UC38 LLC, PNOC Exploration Corp. as well as Prime Oil and Gas Inc. will govern the project.

“As we advance with Phase 4, our focus remains on ensuring sustainable and reliable energy for millions of Filipinos,” Prime Energy president and CEO Donna Kuizon Cruz said.

The Phase 4 drilling program, dubbed “Project Sinagtala,” is a crucial initiative to extend the gas field’s life in line with the 15-year extension granted to the consortium.

“The acceleration of Malampaya Phase 4 is critical to ensuring energy security and preventing potential power shortages in the future,” Cruz said.

She also underscored the importance of indigenous natural gas as the cleanest fossil fuel for power generation, supporting the country’s transition to a low-carbon economy.

Earlier, the consortium awarded a $180-million contract to Dutch firm Allseas Nederland (Brasil) B.V. for the installation of the pipeline and umbilicals to connect two new wells to the Malampaya shallow water platform.

The wells are expected to be drilled next year as the Malampaya consortium aims to deliver new gas supply by 2026.

The detailed well design is expected to be finalized within this year in preparation for the drilling program while simultaneously advancing pipeline design to ensure that it can endure all load stress scenarios.

“With the EPNS certification in place, Prime Energy and the all-Filipino consortium are committed to working closely with the government to meet the nation’s growing energy demands and ensure a more secure and sustainable energy future,” Cruz said.

Located offshore Palawan, the Malampaya gas field is the country’s first and only indigenous gas resource, supplying 20 percent of Luzon’s electricity needs.

Since its commercial operations in 2002, Malampaya has contributed over $13.8 billion to the government.