The prospective next operator of the Malampaya project is being required by the Department of Energy (DOE) to submit a four-year work program for ts application with the government for a license extension that would usher in the potential extraction of additional 1.0 trillion cubic feet (TCF) of gas from the field.
Energy Undersecretary Donato D. Marcos said “we asked for a four-year work program, with inclusion of drilling - there should be a firm commitment of drilling because the potential for gas discovery is in the retention areas.”
The energy official indicated that if the sale of the Malampaya operating stake will be firmed up, it is anticipated that the next operator of the country’s commercial gas field will be Razon-led Prime Exploration Pte. Ltd., the prospective buyer of the stake being unloaded by the Malampaya Energy XP Pte. Ltd. (MEXP) of businessman Dennis Uy.
The original 25-year term of Service Contract (SC) 38 for the Malampaya field will expire in February 2024, but Marcos indicated that the government is inclined to renew the gas project’s license so the adjacent areas could still be drilled for extraction of additional gas resources.
Apart from the work program, the energy official emphasized that the new operator of the Malampaya venture will also need to submit the estimated budget for any supplemental seismic survey and well drilling that shall be carried out at the field.
He stated that while there had been “probability of geological success”, the prospects for additional gas lifting may only be confirmed if actual drilling of wells will be pursued, hence, that is the requirement being demanded from the new Malampaya operator.
“The ultimate findings will be based on the drilling, that’s why we include drilling up to 2024 work program and budget. The one that will renew (the license) will be the buyer,” he noted, in reference to the 45% operating stake that is now currently the subject of a tiered sale process from current operator Shell Philippines Exploration B.V. (SPEX) to Uy-led MEXP and then to Prime Exploration of the Razon group.