In preparation for the approaching exploration and drilling ventures to prolong the gas field’s operational lifespan, Razon-led Prime Energy is overseeing intensive routine maintenance inspections and temporary shutdowns at the Malampaya facility.
The company stressed that regular maintenance inspections are critical to ensure that the facility, with over two decades of operation under its belt, is in top shape to be able to further extend its production.
As reported by Manila Bulletin, the Malampaya consortium planned to conduct fresh drilling activities next year to ascertain the feasibility of extracting more gas output, in line with the field’s extended operational license.
In May of last year, President Ferdinand Marcos Jr. signed a 15-year extension for Malampaya’s service contract (SC 38), which extended the commercial gas field’s operational life from 2024 to 2039, as its initial 25-year contract expired this February 24.
Furthermore, the Department of Energy (DOE) said that investments amounting to more than $600 million were earmarked for a new phase of seismic surveys and drilling of new wells.
Despite facing gas restriction issues last week, Prime Energy stressed that it completed repairs ahead of schedule, which should guarantee uninterrupted operations at the Malampaya shallow water platform.
Prime Energy also clarified that the halt in gas production last February 13 was organized along with the Energy Department and consortium members like Udenna Group’s UC38 and the state-controlled Philippine National Oil Company-Exploration Corporation.
The cause for repair was to manage high gas export pipeline pressure which resulted from liquefied natural gas (LNG) commissioning activities at the First Gen plants, leading to a decline in gas draw rates from the Malampaya field.