The Malampaya gas field has produced around 96.473 billion standard cubic feet (SCF) for the first nine months of the year, compared to last year’s 150.804 SCF, according to the Department of Energy’s (DOE) data.
A decrease in gas production has been already recorded and the DOE is not expecting 2019 results to be as big as last year’s level, according to a Manila Bulletin report.
Previous reports said that the decline in gas output would be experienced starting year 2022, which is two years before the end of the field’s Service Contract (SC) 38 in 2024.
The field could still produce gas up until 2030, however it would require additional investments for new well drilling, as well as the extension of the project’s license.
The license extension is still under discussion.
Meanwhile, Dennis Uy’s Udenna Corporation announced last month that he is buying into the 45 percent stake of Malampaya gas field venture. The transaction is still waiting for closing conditions and regulatory approvals.
PXP Energy Corporation also submitted a proposal to the DOE, eyeing to acquire the facility of the Malampaya field at the end of its contract in 2024.
The proposal was rejected but PXP Energy filed a motion for reconsideration.