New Malampaya wells seen delivering first gas by Q4 2026

Prime Energy, the gas unit of business tycoon Enrique Razon’s Prime Infrastructure Capital Inc., is on track to start producing natural gas from the Malampaya Phase 4 (MP4) by late 2026 following the successful drilling, completion, and flow test in the Camago-3 well in offshore Palawan.

According to Prime Energy, the Malampaya Consortium continues to push activities under the MP4 on schedule, with new subsea pipelines being installed to tie additional resources into the platform and to strengthen large-scale offshore construction capability.

“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,” it said in an emailed statement.

“This progress keeps us firmly on track to deliver first MP4 gas in the fourth quarter of 2026 and opens new opportunities to expand the country’s domestic gas resources,” it added.

No less than President Ferdinand Marcos announced the successful drilling and testing of the gas well.

“Today, I am proud to announce another step forward in our mission to secure affordable, reliable energy for every Filipino,” Marcos said in a video message.

Marcos said the Camago-3 holds an estimated 2.5 times more recoverable gas than the Malampaya East-1 discovery. 

“Together, these two wells are projected to extend the life of the Malampaya gas field by an estimated six years,” he said. 

The flow test of the Camago-3 well in offshore Palawan yielded rates of up to 60 million standard cubic feet of gas per day, confirming a significant increase to Malampaya’s remaining gas resources.

“The successful completion of Camago-3 demonstrates the strength of the Filipino workforce and the close collaboration between government and industry,” the company said.

The Camago-3 is estimated to have recoverable gas volumes approximately 2.5 times greater than the discovery at the Malampaya East 1 (MAE-1) well announced in January, and could double the volume of as that can be produced from Malampaya’s remaining reserves.

The Camago-3 and the MAE-1, both part of the $893-million MP4 development, are expected to extend the operating life of the Malampaya gas field by six years.

Prime Energy leads the Malampaya Consortium, with joint venture partners UC38 LLC., Prime Oil & Gas Inc., and PNOC Exploration Corp.

Moving forward, Prime Energy said it will drill the Bagong Pag-asa exploration well some 30 kilometers north of Malampaya. Should gas be confirmed, the well will undergo drill-stem testing to assess its production potential.

The development comes as the Department of Energy (DOE) has called for the full dispatch of indigenous sources and coal-fired power plants, in a bid to offset the increase in the power rates in the Wholesale Electricity Spot Market (WESM).

Marcos on Tuesday declared a state of national energy emergency and ordered the adoption of a Unified Package for Livelihoods, Industry, Food, and Transport (UPLIFT), to ensure energy supply stability, and support key sectors such as transport, agriculture, and micro, small, and medium enterprises.

Malacañang, citing DOE Secretary Sharon Garin, has maintained that there is no crisis in oil supply but rather a disruption in prices due to the developments in the Middle East.

Local pump prices have been hiked for the past 11 straight weeks for gasoline, and 13 for both diesel and kerosene, amid the ongoing conflict in the Middle East. —LDF, GMA Integrated News