A new natural gas discovery under Service Contract No. 38 (SC 38)—described by the government as the country’s first 100% Filipino-led gas discovery—could help extend the Philippines’ indigenous gas supply and ease long-standing energy security concerns, according to the Department of Energy (DOE).

The discovery was made at the Malampaya East-1 well, the first of three wells being drilled under the current SC 38 drilling campaign. The project is operated by Prime Energy Resources Development B.V., together with its partners UC38 LLC, PNOC Exploration Corporation, and Prime Oil and Gas Inc.

The DOE said two additional wells—Camago-3 and Bagong Pagasa-1—are already underway, with initial results expected by the end of the quarter. These wells are part of ongoing efforts to identify nearby prospects that could provide incremental gas supply following the decline of the original Malampaya reserves.

According to the DOE, the discovery follows the government’s decision to renew SC 38 until 22 February 2039, after Malampaya’s original gas reserves were depleted in 2023. The extension allows continued production from the Malampaya Gas Field while enabling further exploration in surrounding areas.

President Ferdinand R. Marcos Jr. welcomed the discovery, which the DOE said reflects renewed momentum in the country’s upstream oil and gas sector and efforts to reduce dependence on imported fuel.

Energy Secretary Sharon S. Garin said the development was delivered quickly as part of the administration’s push for energy security.

“Driven by the President’s marching order for energy security, this discovery was delivered in record time. This will be marked in history as the first 100% Filipino-led indigenous gas venture,” Garin said.

Beyond SC 38, the DOE said the government has awarded nine major service contracts covering areas such as the Galoc Field, the West Philippine Sea, and the Sulu Sea, attracting more than USD 200 million in pledged investments after years of limited upstream activity.

The agency also said it has secured funding for the Philippine Gradiometry and Seismic Survey Project, a nationwide effort aimed at generating geological data for future bidding rounds, while continuing to review policies to respond to new technologies and industry needs.

How much relief can new Filipino-led gas discoveries realistically provide as the Philippines works to cut its reliance on imported fuel?

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