Drilling News from the Philippines Gas Field Development

In recent drilling news from the Philippines Energy Secretary Raphael Lotilla remarked that if the targeted fresh round of production well drilling would eventually command additional gas lifting, the current pricing prescription for any portended gas finds in the Malampaya field would therefore be re-assessed by the government, who are the owners of the resource.

Under the work program submitted by the Malampaya consortium (as led by operator Prime Energy) will be drilling 2-3 new production wells. If that will result in fresh commercial gas discovery, new gas sale purchase agreements (GSPAs) will have to be sealed with prospective gas buyers.

Comprising the consortium are Prime Energy Resources Development B.V. of tycoon Enrique Razon, UC38 LLC of the Udenna Group and state-run Philippine National Oil Co.-Exploration Corp.

In drilling news conveyed by Energy Undersecretary Alessandro Sales, the residual gas that could still be lifted from Malampaya should last until 2025-2027. Prospective new production could top 210 billion cubic feet (BCF) of gas. Data on the scale of recoverable reserves had last been updated in 2014. This data needs a new extended seismic survey which will then confirm the viability of drilling new wells within near-installation and near-field plays of Malampaya.

Lotilla, nevertheless, admitted that any new production would require long lead-times; and there are also other risks to petroleum exploration and production (E&P) investments that the Malampaya consortium will have to overcome in executing their planned work program in the field. It is expected the field will become depleted some time in 2027.

Oil and Gas News 25th May 2023.