President Marcos Optimistic on Finding More Gas Reserves at Malampaya Field

Strategic Insights -

President Ferdinand Marcos expressed confidence in discovering additional gas reserves at the Malampaya gas field as the ongoing drilling operations under Phase 4 of the project near Palawan enter a critical phase. Energy Secretary Sharon Garin confirmed that the $893-million project to extend the life of the Malampaya gas field is on track for completion this year, with a reasonable chance of success in finding further reserves. The drilling operation involves exploring two new deep-water wells, Camago-3 and Malampaya East-1, as well as a new exploration field, Bagong Pag-asa-1. The Malampaya gas field is the country's only indigenous gas source, supplying approximately 20% of Luzon's electricity needs, albeit at a reduced capacity of 1.2 to 1.3 GW due to declining reserves.

Key Takeaways:

  • The ongoing drilling operations under Phase 4 of the Malampaya project near Palawan are expected to explore the potential for additional gas reserves.
  • Energy Secretary Sharon Garin stated that the $893-million drilling project is on track for completion this year, with a reasonable chance of success.
  • The project involves drilling two new deep-water wells, Camago-3 and Malampaya East-1, as well as a new exploration field, Bagong Pag-asa-1.
  • The Malampaya gas field is the country's only indigenous gas source, supplying approximately 20% of Luzon's electricity needs.
  • The current output of Malampaya is 1.2 to 1.3 GW, below its former output due to declining reserves, with the goal of boosting production to 1.5 to 1.7 GW.
  • The project is operated by Razon-led Prime Energy Resources Development and its partners, UC38 LLC, PNOC Exploration Corp., and Prime Oil and Gas Inc.

Statistics:

  • $893 million: The project's estimated cost for extending the life of the Malampaya gas field.
  • 20%: The percentage of Luzon's electricity needs supplied by the Malampaya gas field.
  • 1.2-1.3 GW: The current output of Malampaya, below its former output due to declining reserves.
  • 1.5-1.7 GW: The goal of boosting Malampaya's natural gas production.
  • February 2039: The extended contractual lifetime of the Malampaya gas field based on the Renewal Agreement of Service Contract No. 38 (SC 38).
  • February 2024: The original contract expiration date for the Malampaya gas field.

Sources:

  • Garin, S. (2023). Interview with the President.
  • Marcos, F. (2023). Groundbreaking ceremony for the P2.5-billion Caticlan Passenger Terminal Building at the Caticlan Airport in Aklan.
  • Department of Energy. (2023). Renewal Agreement of Service Contract No. 38 (SC 38).