The Enrique Razon-led Prime Infrastructure Capital Inc. is lining up the drilling of three wells in order to extend the production life cycle of the Malampaya Gas Field.
Prime Infra, who recently acquired Shell Philippines Exploration B.V (SPEX), operator of the Malampaya, is awaiting the approval of the project’s application for the license extension.
In a report by the Manila Bulletin, Prime Infra president and CEO Guillaume Lucci said that the company is looking to drill two operational wells, and one exploratory well. It will also have a round of seismic surveys within the covered blocks of Malampaya’s Service Contract 38.
The actual cost of the programs, however, was not disclosed. Lucci said that the details of the license extension are in discussion with the Department of Energy (DOE).
For the gas supply and purchase agreements that will be expiring in 2024, Prime Infra believes that indigenous gas may be cheaper as compared to imported liquefied natural gas commodities.
Based on DOE data, the Malampaya field could still reach as much as one trillion cubic feet. However, data must be confirmed by a seismic survey and the drilling activities that have to be carried out at the field.
The DOE further added that there could still be “commercial gas potential” discovery in the Malampaya East, Iloc, Nido, and Linapacan – which are all within the service contract coverage.
Prime Infra will be investing around Php 55 billion for its projects on energy, safe water, and waste management.