Business Bayani PH

The Philippines scored a win for its energy security this week with the awarding of a multi-million dollar contract to kick off deepwater drilling operations for the Malampaya Phase 4 project. Prime Energy Resources Development B.V., led by businessman Enrique Razon, announced the selection of London-based firm Noble for the project.

Unlocking new resources

The contract, valued at $69.9 million, grants Noble the use of their advanced “Noble Viking” drilling rig. This vessel boasts innovative features like dual derricks and managed pressure drilling (MPD) systems, specifically designed for efficient and safe deepwater operations. 

The rig will be deployed to tap into new resources within the Camago and Malampaya East fields, while also targeting the promising Bagong Pagasa exploration well situated north of the Malampaya complex.

“We are very proud of the milestones that the hardworking team of Filipinos at Prime Energy achieves month on month to ensure that we are on track for the planned drilling in 2025,” said Prime Energy managing director and general manager Donnabel Kuizon Cruz. 

“Malampaya gas has served us for more than 20 years. We are committed to [continuing to provide] reliable flow and supply of indigenous gas to our customers, protecting Filipino consumers from volatile forces that affect oil and gas prices.”

Boosting energy independence

The Malampaya Phase 4 project is expected to significantly contribute to the Philippines’ long-term energy security. By accessing new gas reserves, the country can lessen its reliance on imported fuel sources. This, in turn, can help stabilize domestic energy prices and shield Filipino consumers from the fluctuations of the global oil and gas market. 

Additionally, the extension of Service Contract No. 38 until February 2039 underscores the long-term commitment to unlocking the full potential of the Malampaya gas field.

Malampaya’s legacy

The Malampaya gas field, discovered in the late 1990s, has been a cornerstone of the Philippines’ energy sector for over two decades. A consortium led by Shell Philippines Exploration B.V., together with other companies like Chevron Malampaya LLC and the DOE, has overseen the development and production activities. Since 2001, the project has remitted a staggering $13.5 billion to the government, highlighting its substantial economic contribution.

The Malampaya Phase 4 project marks a significant step towards securing the Philippines’ energy future. With drilling slated to begin in 2025, Filipinos can anticipate a more stable and indigenous gas supply in the coming years. This not only bolsters energy security but also has the potential to mitigate the impact of volatile global energy prices on Filipino consumers.Ⓒ

📷 The Malampaya field is located off-coast Palawan province.