Prime Energy has commenced gas production from its Malampaya Phase 4 project offshore the Philippines, connecting the Malampaya East-1 and Camago-3 wells to the existing production system through newly installed subsea infrastructure. The nearly USD1 billion expansion involved drilling two deepwater wells and installing subsea infrastructure. Initial well tests indicate that the additional output could extend the field’s productive life by approximately six years, depending on future gas offtake. Integration and production ramp-up will continue over the coming months.
The project is expected to add 222 billion cubic feet (bcf) of recoverable gas, supporting an estimated 31.46 billion kWh of electricity generation, equivalent to the annual consumption of around 13.11 million households. Completed within 27 months of the final investment decision, the project finished five months ahead of schedule and marked the Philippines’ first offshore drilling campaign in more than a decade. Gas from Malampaya supplies power plants in Batangas serving the Luzon grid. Since operations began in 2001, the SC 38 consortium reports that the project has generated more than USD14 billion in revenue for the Philippine government.