The Department of Energy (DOE) said Tuesday it is closely monitoring two active drilling sites in Palawan’s Malampaya natural gas field. Initial results from the wells are expected by the end of the quarter.
The announcement comes after Prime Energy discovered a new natural gas reservoir, Malampaya East-1 (MAE-1), about five kilometers east of the existing field. The resource is estimated at 98 billion cubic feet (BCF) of gas—enough to power 5.8 million households for a year or light 2.78 million streetlights continuously. MAE-1 is the first natural gas discovery in the Philippines in over a decade and the first of three wells in the current drilling campaign.
DOE said that the discovery strengthens the country’s indigenous energy supply. Nine major service contracts have been awarded for local energy projects, including continued production from the Galoc Field, exploration in the West Philippine Sea and Sulu Sea, and the world’s first competitive bid round for native hydrogen in Central Luzon. Hydrogen may be used alongside natural gas to reduce emissions.
The agency also secured funding for the Philippine Gradiometry and Seismic Survey Project, a nationwide effort to map potential fuel resources and support future exploration. DOE said it will continue updating policies to keep pace with technology and industry trends.
Prime Energy operates the Malampaya field with a 45 percent stake; the Philippine government holds 10 percent through PNOC-Exploration Corp., while UC38, a Udenna Corp. subsidiary, owns the remaining 45 percent. Since its start, Malampaya has generated more than US$13.9 billion for the government and reduced dependence on imported fuels.
