Razon-led consortium investing $180M to extend Malampaya life

The consortium members of the Malampaya gas field, led by Prime Energy Resources Development BV, are coughing up an additional $180 million to extend the gas field’s production life.

The Service Contract 38 (SC 38) Consortium led by tycoon Enrique Razon tapped Dutch firm Allseas Nederland to link the two new wells to the Malampaya Shallow Water Platform. In March, American offshore drilling company Noble was contracted to drill two deepwater development wells.

The group said they would now finalize the detailed well and pipeline design “to ensure it can withstand all load stress scenarios applicable in the challenging deepwater subsea canyon crossing of the Camago-Malampaya field.”

READ: Drilling firm tapped to extend life of Malampaya field

The wells will be drilled next year, with a new supply of gas expected by 2026, according to the SC 38 consortium.

These efforts were part of the consortium’s Malampaya life extension project dubbed “Project Sinagtala,” following the 15-year license extension granted by President Ferdinand Marcos Jr. in May last year.

“As a service contractor to the government, we are committed to maintaining high standards of production and exploration that have defined the Malampaya project since its inception in 2001. By increasing our gas supply, we extend Malampaya’s life and sustain our own ‘sariling atin’ Filipino gas, always available and at a stable and predictable price,” said Donnabel Kuizon Cruz, president and chief executive officer of Prime Energy.

“We are fully prepared to proceed with Project Sinagtala as we have, over the past year, built the required local expertise to successfully deliver the wells and install the required subsea infrastructure,” she added.

Malampaya offshore field supplies about 20 percent of Luzon’s electricity needs.

Aside from Prime Energy, the consortium is composed of the Philippine National Oil Company-Exploration Corp., UC 38 LLC, and Prime Oil and Gas Inc.