The Philippine National Oil Company (PNOC) is aiming to secure a Php 6.02 billion supplemental budget, positioning itself to step in financially should any consortium members in the Malampaya gas field project face challenges in meeting their capital obligations for the upcoming well drilling operations.
In a report by Manila Bulletin, PNOC’s president and CEO, Oliver B. Butalid, explained to Congress that the supplementary budget request is designed to act as a reserve investment fund, and will be from the company’s own internally generated finances.
Butalid added that the additional budget is designed to provide financial support in case any member of the Malampaya consortium encounters funding issues, ensuring that the exploration and development of the new Malampaya wells in 2025 can proceed without interruption.
PNOC-EC vice president for the Management Services Division, Candido Magsumbol, said that the firm is actively continuing the extraction and commercialization of natural gas and condensate from Malampaya.
To ensure the longevity of the field’s output, the company has scheduled the drilling of two commitment wells as part of its strategic plan.
Prime Energy, which oversees operations at the Malampaya field, said that American firm, Noble, has been contracted to drill at least three new wells to boost gas production. This contract, worth USD 69.9 million, was secured earlier this year.
Additionally, the Texas-based Noble Viking drillship will handle the initial drilling of two wells, with this component of the project valued at USD 45 million.
These new drilling projects are pivotal in evaluating the potential for further gas extraction from the Malampaya field. They are also integral to the 15-year extension of Service Contract (SC) 38, which the Marcos administration has granted, extending the project’s duration from 2024 to 2039.
According to the Department of Energy (DOE), the Malampaya consortium is set to inject between USD 600 million and USD 660 million into the project, anticipating the discovery of additional commercially viable gas reserves in the field’s adjacent areas.
