^{In photo: Flaring of gas from the Noble Viking drillship during the Camago-3 well flowback as part of the Malampaya Phase 4 (MP4) project.}

The successful flow test of the Camago-3 well offshore Palawan has strengthened the outlook for the Malampaya gas field, with operator Prime Energy confirming first gas from its Phase 4 expansion remains on track for the fourth quarter of 2026.

Prime Energy, operator of Service Contract No. 38 (SC 38), on Thursday said that it is on track to deliver first gas from the Malampaya Phase 4 (MP4) development by the fourth quarter of 2026, following President Ferdinand R. Marcos Jr.’s announcement of the successful drilling, completion, and flow test of the Camago-3 well.

The Department of Energy said Camago-3 flowed at rates of up to 60 million standard cubic feet per day (mmscf/d), indicating a substantial addition to the field’s remaining reserves and reinforcing the role of indigenous gas in securing Luzon’s power supply.

“The successful completion of Camago-3 demonstrates the strength of the Filipino workforce and the close collaboration between government and industry,” Prime Energy said in a statement.

Prime Energy leads the consortium advancing the Malampaya Phase 4 development campaign, alongside UC38 LLC, PNOC Exploration Corporation, and Prime Oil & Gas, Inc.

The well is expected to significantly lift Malampaya’s output, with recoverable volumes estimated to be about 2.5 times larger than the Malampaya East-1 (MAE-1) discovery announced earlier this year. On its own, Camago-3 effectively doubles the volume of gas that can be produced from the field’s remaining reserves.

Prime Energy reported that development work under the USD 893-million Malampaya Phase 4 (MP4) project remains on schedule, including the installation of new subsea pipelines to connect additional resources to the existing platform. The activity also marks the first major offshore construction activity in the field in over two decades.

“Delivering results of this scale in less than three years since the renewal of SC 38 is an amazing achievement and reflects what ‘Top Quartile’ performance looks like in the international Oil and Gas industry,” the company said in a statement. “This progress keeps us firmly on track to deliver first MP4 gas in the fourth quarter of 2026 and opens new opportunities to expand the country’s domestic gas resources.”

Combined with MAE-1, Camago-3 is expected to extend the operating life of the Malampaya gas field by around six years, ensuring continued supply of indigenous gas to power plants that supply a significant share of Luzon’s electricity.

Prime Energy highlighted the cost advantage of domestic gas, with Malampaya fuel pegged at around PHP 4.80 per kWh versus approximately PHP 10.30 per kWh for imported liquefied natural gas, helping shield consumers from global price volatility.

“The results at Camago-3 further strengthen our confidence in Malampaya’s remaining resource potential,” the company said. “Together with the Malampaya East-1 gas discovery, this will deliver continued value of indigenous natural gas in ensuring a stable and reliable power supply for Filipino consumers.”

The consortium’s next step is the drilling of the Bagong Pag-asa exploration well north of Malampaya, which could further expand the country’s domestic gas base if successful.

How materially does Camago-3 shift expectations for Malampaya’s decline curve and Luzon’s near-term supply gap?

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