‘New Malampaya gas arriving at crucial time’

March 28, 2026 | 12:00am

MANILA, Philippines — The anticipated delivery of new gas supply to the Malampaya field offshore Palawan this year comes at a pivotal moment amid the global oil crisis, analysts said.

Months after the historic gas find at Malampaya East-1 (MAE-1), Razon-led Prime Energy Resources Development B.V. has completed the drilling and testing of Camago-3, a significantly larger resource.

This marks another milestone under the $893-million Malampaya Phase 4 (MP4) drilling campaign, which also involves the drilling of the Bagong Pag-asa-1 exploration well.

Sought for comment, Juan Paolo Colet of China Bank Capital Corp. said the latest MP4 development “comes at a crucial time” for the Philippines.

“The current oil crisis is a stark reminder of the critical importance of finding domestic energy sources, so that new discovery will certainly support our country’s drive for energy security,” Colet said.

The Philippines is currently facing an energy emergency as the ongoing US-Israel war with Iran continues to damage critical infrastructure and disrupt oil supplies in the Middle East. 

As a net importer of oil, the Philippines is directly feeling the impact, experiencing a supply crunch and consecutive weekly increases in fuel prices.

With the new Malampaya wells, Rizal Commercial Banking Corp. chief economist Michael Ricafort noted that the Philippines could benefit from a more diversified energy supply.

“This would add to the country’s energy supplies, especially for electricity production, and would fundamentally reduce reliance on imported fuel and save on US dollars used to pay for fuel imports,” Ricafort said.

Prime Energy, the operator of Service Contract 38 governing the Malampaya field, said it is on track to deliver first gas from the MP4 development by the fourth quarter.

Camago-3 flowed at rates of up to 60 million standard cubic feet of gas per day, confirming a substantial addition to the Malampaya field’s remaining gas resources.

MAE-1, meanwhile, is estimated to contain around 98 billion cubic feet of gas in place, equivalent to about 14 billion kilowatt-hours of electricity annually.

“Delivering results of this scale in less than three years since the renewal of SC 38 is an amazing achievement and reflects what ‘Top Quartile’ performance looks like in the international oil and gas industry,” Prime Energy said.

Together, Camago-3 and MAE-1 are expected to extend the operating life of the Malampaya gas field by around six years, helping ensure the continued supply of indigenous natural gas to the Luzon grid.