Manila: Razon-led Prime Energy is currently evaluating a 'long list' of service contracts as it seeks to help boost the country's renewable energy capacity. In a briefing on Wednesday, Prime Energy Chief Executive Officer Donnabel Kuizon Cruz highlighted the company's extensive pipeline of prospects, acknowledging the inherently low success rate in oil exploration-about two successful outcomes for every twelve drillings.
According to Philippines News Agency, Cruz stated, "Which means that in order to meet that statistic, you really have to look at a very long list of prospects. If we don't assess 20 or more prospects, we cannot select the best option with the highest chance of success. There is creativity, professionalism, and expertise involved in this kind of work, and that's what we do." Earlier this year, Malaca±ang and Prime Energy announced the successful drilling of Camago-3 in Palawan, anticipated to produce up to 60 million standard cubic feet of gas per day. This marks the second major milestone under the USD 893 million Malampaya Phase 4 project, following the Malampaya East-1 discovery in January. The Phase 4 project is targeted to deliver its first gas output in the last quarter of 2026.
These developments are projected to extend the Malampaya field's operating life by approximately six years, providing a critical boost as the Philippines aims to increase the share of renewable energy in its power mix to 35 percent by 2030 and 50 percent by 2040. Prime Energy is part of the consortium awarded Service Contract 38, or the Malampaya Deep Water Gas-to-Power Project. The consortium secured a 15-year contract extension, permitting operations to continue until February 22, 2039.
With the project supplying around 12 percent of Luzon's electricity requirements and remaining the country's only indigenous source of natural gas, Cruz emphasized the company's commitment to maximizing the field's capacity. She noted that Malampaya gas is significantly cheaper than liquefied natural gas (LNG) and about four times less expensive than diesel, reinforcing the push to increase production and help lower electricity costs for Filipinos. Cruz also assured that policy continuity is maintained despite changes in administration, as the consortium holds a long-term contract for the project.
"At the end of the day, Malampaya is owned by the people. We are, in a way, just stewards of this. We work with the government as contractors to ensure that the gas continues to flow," she said. Cruz emphasized that strengthening the country's energy security will require more exploration and drilling activities to secure supply. "We need to drill more so that we can continue de-risking," she said, underscoring the importance of confirming whether prospective areas have the capacity to produce oil and gas.
