Prime Energy, operator of Service Contract No. 38 (SC 38), on Thursday, March 26 said that it is on track to deliver first gas from the Malampaya Phase 4 (MP4) development by the fourth quarter of 2026, following President Ferdinand R. Marcos Jr.’s announcement of the successful drilling, completion and flow test of the Camago-3 well in offshore Palawan.
The Camago-3 well flowed at rates of up to 60 million standard cubic feet of gas per day (mmscf/d), confirming a substantial addition to Malampaya’s remaining gas resources and reinforcing the role of indigenous natural gas in supporting the Philippines’ long-term energy security.
'The successful completion of Camago-3 demonstrates the strength of the Filipino workforce and the close collaboration between government and industry,' Prime Energy said.
The Malampaya consortium, led by Prime Energy in collaboration with joint venture partners UC38 LLC, Prime Oil & Gas, Inc. and PNOC Exploration Corporation, continues to advance activities under MP4 on schedule. For the first time since 2000, new subsea pipelines are being installed to tie additional resources into the Malampaya platform, restoring large-scale offshore construction capability and reinforcing the Philippines’ long-term energy resilience.
'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. This progress keeps us firmly on track to deliver first MP4 gas in the fourth quarter of 2026 and opens new opportunities to expand the country’s domestic gas resources,'.
Prime Energy, a wholly owned subsidiary of Prime Infra, also expressed its appreciation to President Ferdinand R. Marcos Jr. and the DOE for supporting new investments to sustain the country’s indigenous natural gas supply.
Camago-3 represents a significantly larger resource, with recoverable gas volumes estimated to be approximately 2.5 times greater than the discovery at the Malampaya East-1 (MAE-1) well announced last January. The single well alone effectively doubles the volume of gas that can be produced from Malampaya’s remaining reserves.
Together, Camago-3 and MAE-1 are expected to extend the operating life of the Malampaya gas field by approximately six years, helping ensure the continued supply of indigenous natural gas to the Luzon power grid.
Both wells form part of the $893-million Malampaya Phase 4 development campaign, which aims to unlock additional gas resources and sustain operations at the country’s only indigenous natural gas source.
Utilizing indigenous gas provides a vital shield against price volatility driven by global events. Malampaya’s fuel cost equivalent is approximately 4.80 per kWh, compared with roughly 10.30 per kWh for imported liquefied natural gas (LNG). By maximizing indigenous gas resources, Malampaya helps protect Filipino consumers from global fuel price volatility while supporting more stable electricity costs.
'The results at Camago-3 further strengthen our confidence in Malampaya’s remaining resource potential,'” Prime Energy said. 'Together with the Malampaya East-1 gas discovery, this will deliver continued value of indigenous natural gas in ensuring a stable and reliable power supply for Filipino consumers.'
The next major step is the drilling of the Bagong Pag-asa exploration well, located about 30 kms north of Malampaya. If gas is confirmed, the well will undergo drill-stem testing to assess its production potential.
Malampaya Phase 4 has been certified as a Project of National Significance. Since inception, the Malampaya project has generated more than US$14 billion in revenues for the Philippine government, while significantly reducing dependence on imported fuels.
Source: Prime Energy
