Razon’s Energy Firm Eyes 2026 Oil and Gas Breakthrough
Prime Energy Resources Development NV has begun data reviews for a new exploration well that could help the Philippines largest and most important energy asset, the Malampaya gas field, have its life extended.
PRIME Energy president and chief executive officer Donnabel Kuizon-Cruz said in a briefing on Tuesday, April 14, that the Razon-led operator expects to complete its evaluation of the Bagong Pag-asa well by mid-2026.
"It's a high-risk, high-reward play," Cruz told reporters referring to the Bagong Pag-asa site that is around 30 kilometers (18.6 miles) from the main field.
This new well is a completely different story — unlike the Malampaya East wells, which have the same underlying “play” or geological signature as nearby producing areas, this well needs months-long intensive technical evaluation to see if it’s commercially viable. Provided the data is positive, this project will move into a formalized testing process.
This creates the demand for alternative indigenous sources just as Prime Energy approaches the completion of Phase 4 of Malampaya's deep water gas-to-power project.
Cruz said the expansion is still on schedule to be completed in late 2025. It intends to stifle natural drop of the field and maintain production ability at over current levels of 210 million-230 million standard cubic feet per day.
The company has placed emphasis on the immediacy of its current expansion. Cruz said the normal completion period for similar deep-water projects takes five to seven years, but the all-Filipino team was able to implement the current phase at three years.
Positive results have been registered through recent appraisal activities performed by the consortium. The Camago-3 well offshore Palawan had a tested flowrate of 60 million standard cubic feet per day.
In addition, a new discovery at the Malampaya East-1 is believed to contain about 98 billion cubic feet of gas. Combined, these incremental contributions are anticipated to prolong the productive life of the Malampaya contract by as much as six years.
For instance, outside the scant proximity of legacy infrastructure, Prime is weighing additional exploration throughout its service contract. A geologist and petrophysicist team is currently updating the company work program and budget to determine its next targets.
Though the exact locations of these potential blocks are secret, the company indicated it is not tied to one region as it looks to strengthen national energy security.
The backbone of the Philippine power grid, the Malampaya field supplies fuel to Batangas-based power plants that provide a large share of Luzon's electricity needs. The government has made it a priority to maintain local supply as it reduces its reliance on pricey imported liquefied natural gas in the future.
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