Next Malampaya operator must submit 4-year work plan – DOE

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The next possible operator of the Malampaya gas-to-power project is asked to submit a four-year work program for its license extension application that could lead to a potential extraction of one trillion cubic feet (TCF) of gas. 

In a report by the Manila Bulletin, Energy undersecretary Donato Marcos said that the department asked for a four-year work program, which should include a “firm commitment of drilling because of the potential of gas discovery in the retention areas.” 

If the sale of Malampaya’s operating stake is finalized, it is expected that the next operator of the country’s lone gas field would be Prime Exploration Pte. Ltd, a unit of Enrique Razon’s Prime Infrastructure Capital Inc., which acquired the stake from Dennis Uy’s Malampaya Energy XP Pte. Ltd. (MEXP). 

Malampaya’s Service Contract 38 is set to expire on February 2024. Prime Infra earlier expressed its intention to apply for a contract extension to that the firm could invest in Malampaya’s expansion. 

Furthermore, Marcos said that the government is also looking to renew Malampaya’s license so the adjacent areas could be drilled for extracting additional gas resources. 

On top of the four-year work program, the upcoming operator is also required by the Department of Energy (DOE) to submit its estimated budget for any supplemental seismic survey and well drilling. 

In earlier developments, the House Committee on Appropriations asked the DOE to submit a copy of the share purchase agreement between Shell Petroleum N.V and MEXP. In previous Congress hearings, Energy Undersecretary Donato Marcos said that the deal between Shell and MEXP has been “consummated” despite the Philippine National Oil Company – Exploration Corporation (PNOC-EC) withholding its consent. 



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