In an attempt to secure additional indigenous gas supply, the Philippine National Oil Company-Exploration Corporation (PNOC-EC) is positive on the outcome of drilling new wells near Malampaya.
Philippine Star reported that PNOC-EC is confident in the potential success of the upcoming wells to be drilled by the Malampaya consortium.
The Malampaya Consortium consists of Prime Energy Resources Development B.V., a subsidiary of Prime Infrastructure Capital, PNOC-EC, and UC38 LLC.
PNOC-EC president Franz Alvarez said that the consortium would drill two new wells in 2025 with preparations ongoing.
Alvarez added that the success probability of the drilling is around 80%.
Service Contract 38, which covers the Malampaya gas field, was signed earlier by President Marcos Jr. to extend for another 15 years to utilize the potential of the gas field and nearby areas.
The extension will also allow the consortium to conduct a minimum of two new deepwater well drillings during the initial phase of its work plan from 2024 to 2029.
Alvarez added that the consortium is expecting an investment of $690 million from 2023 to 2026 to aid in the further exploration of the remaining gas deposits and PNOC-EC would spend Php 3.45 billion on the program.
Furthermore, PNOC-EC has a proposed budget of Php 11.94 billion for 2024 which Php 2.02 billion would be allotted for the continuation of Malampaya operations.
The Malampaya project supplies 20% of Luzon’s total energy needs through the natural gas it produces for the power plants in Batangas City, accounting for 20% of Luzon’s total energy requirement.