DOE assesses Malampaya’s possible extension of operations


Department of Energy (DOE) Secretary Raphael Lotilla visited the Malampaya gas field in order to assess its condition and viability for its possible license extension. 

In a report by the Manila Bulletin, Lotilla’s visit was spearheaded by Prime Infrastructure Capital Inc. Company president and CEO Guillaume Lucci said that Lotilla’s visit was aligned with their goal “to sustain the operations of the Malampaya at a time of a great energy insecurity.” 

Malampaya’s Service Contract (SC) 38 will expire on February 23, 2024, and is also seen to be completely depleted by 2027. 

Prime Infra said that it looks to contribute during “the critical time in the country’s energy transition” by doing everything that can be done “to generate as much power as possible to keep up with the energy demands in Luzon,” Lucci said in a Philippine Star report. 

The Enrique Razon-led company recently took full ownership and control of Shell Philippines Exploration B.V (SPEX), completing the acquisition 45% operating stake in Malampaya. 

Should Malamapya’s contract be extended, Prime Infra will be drilling an exploratory well, and two operational wells in the field. It will also conduct a round of seismic surveys within the covered blocks. 

Prime Energy general manager Sebastian Quiñones said that Lotilla’s visit to the field was able to confirm the alignment of DOE’s goals and the Malampaya project’s continued operations. 

The Malampaya Consortium is composed of Prime Energy, Dennis Uy’s UC 38, and Philippine National Oil Co. – Oil Exploration (PNOC-EC). 

The Malampaya gas field produces natural gas for power plants in Batangas City, accounting for 20% of Luzon’s energy requirements.