Prime Energy has started producing gas from its Malampaya Phase 4 project offshore the Philippines, bringing output from two new wells into the existing production system.
The Malampaya East-1 and Camago-3 wells were connected to the field through subsea infrastructure installed under the project.
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Philippine President Ferdinand Marcos Jr., Department of Energy officials and SC 38 joint venture partners marked the first flow at the Malampaya Onshore Gas Plant in Batangas City.
The integration and ramp-up of the wells will continue over the coming months.
The Phase 4 project underscores the continued importance of investment in the Malampaya field.
Initial well tests suggest the new output could extend the Malampaya field’s life by about six years, depending on future gas use.
The expansion involved an investment of nearly $1bn, including the drilling of two deepwater wells and the installation of new subsea infrastructure.
Operators estimate it will add 222 billion cubic feet (bcf) of recoverable gas, enabling the generation of some 31.46 billion kWh of electricity, enough for around 13.11 million households in a year.
Completed within 27 months of the final investment decision (FID), the project finished five months ahead of schedule.
The work was the Philippines’ first offshore drilling campaign in more than a decade. Its supply chain spanned 17 countries, while Philippine-based companies contributed fabrication and manufacturing work.
Prime Infra chairman Enrique Razon Jr. said: “For 25 years, Malampaya has demonstrated the value of developing our own energy resources. It has powered millions of Filipino households and businesses, supported economic growth, and generated more than $14bn in government revenues.
“But Malampaya’s resources are finite. Sustaining production requires continued investment and the technical expertise to develop reserves that are increasingly challenging to access. That is what Malampaya Phase 4 represents.”
Malampaya gas currently supplies power plants in Batangas serving the Luzon grid. Output from the new wells is expected to help sustain the domestic fuel supply for power generation, although sustainable production levels have yet to be established.
Since starting operations in 2001, the SC 38 consortium reports that the project has generated more than $14bn in revenue for the Philippine government.
In May 2023, Prime Energy signed an agreement to supply condensate from the Malampaya gas field to Abu Dhabi National Oil Company Global Trading (AGT).
