PNOC sees high production rate from new Malampaya wells

THE Philippine National Oil Company-Exploration Corp. (PNOC-EC) projected an «80 percent» production rate from the two new wells to be dug by the Malampaya consortium.

During a Senate finance subcommittee budget hearing last September 22, PNOC-EC President Franz Josef George Alvarez said the consortium, led by operator Prime Energy Resources Development B.V., will drill two new wells in 2025.

The PNOC-EC has proposed a budget of P11.94 billion for 2024. At least P2.02 billion was earmarked for continuing Malampaya operations.

The Malampaya consortium is composed of Prime Energy, a subsidiary of Razon-led Prime Infrastructure Capital, Inc. (Prime Infra), UC38 LLC and PNOC-EC. Prime Energy has a 45-percent stake in the consortium.

Service Contract (SC) 38, which covers the Malampaya gas field, has been renewed for another 15 years. It required the consortium to explore and drill at least two new deep-water wells from 2024 to 2029.

It is designed to unlock the potential of both the existing Malampaya gas field and nearby areas, the PNOC said in a statement on Monday.

Alvarez said preparations for actual drilling are ongoing.

«By 2025, we will drill two additional wells,» he told the senators. «If successful, by 2026 we will have additional production. The probability of success is around 80 percent.»

He said that the consortium is expected to invest at least $690 million to further explore the remaining gas deposits in Malampaya.

Prime Energy and its personnel, he added, have shown technical competence in managing the decline in gas supply and completing an accident-free maintenance program of Malampaya.

PNOC-EC, as part of the consortium, will spend some P3.45 billion on the work program.

Alvarez said the total cost of the