The Philippine National Oil Company-Exploration Corp. (PNOC-EC) has projected a high success rate on new wells to be dug by the Malampaya consortium.
Franz Josef George Alvarez, PNOC-EC president, said in a budget hearing of the Senate sub-finance committee on Friday the consortium led by operator Prime Energy Resources Development B.V. will drill two new wells in 2025 with a “probability of success” at “around 80 percent.”
Service Contract 38, which covers the Malampaya gas field, has been renewed for another 15 years. The renewal required the consortium to explore and drill at least two new deep-water wells in the first phase of its work program or from 2024 to 2029.
The move is meant to unlock the potential of both the existing Malampaya gas field and nearby areas.
The current best estimate for the near field is an additional 210 billion cubic feet of gas.
Alvarez said preparations for actual drilling are ongoing. If the diggings are successful, the new wells will provide the country with additional indigenous gas source.
Alvarez said the consortium is expected to invest at least $690 million in further exploring the remaining gas deposits in Malampaya from 2023 to 2026.
The Malampaya consortium is composed of Prime Energy and UC38 LLC each with 45 percent stake and PNOC-EC, 10 percent.
PNOC-EC, as part of the consortium, will spend some P3.45 billion on the work program
During the hearing, PNOC-EC proposed a budget of P11.94 billion for 2024 wherein at least P2.02 billion is allotted for continuing Malampaya operations.
The Malampaya project is one of the country’s most important power assets as it provides natural gas supply to power plants in Batangas City that account for 20 percent of Luzon’s total energy requirement.
