President Ferdinand R. Marcos Jr.’s endorsement of the latest Malampaya gas discovery in his 2026 State of the Nation Address has put fresh focus on the role of Prime Energy and its partners in extending the life of the country’s biggest indigenous energy asset as the Philippines races to strengthen energy security.
Calling the new reserves a “national treasure,” Marcos said the discovery could generate enough electricity to power about 1.6 million households over the next eight years, underscoring the strategic importance of developing domestic energy resources as global fuel markets remain volatile.
The additional reserves were confirmed through the Malampaya Phase 4 drilling campaign undertaken by the Service Contract 38 consortium led by Prime Energy. The new Malampaya East-1 and Camago-3 wells are expected to begin producing gas by the fourth quarter of 2026, extending output from the country’s only indigenous natural gas field.
The President also credited the extension of Service Contract 38 until 2039 for reviving drilling activities after an eight-year pause, saying the move provided investors with the regulatory certainty needed to restart exploration.
Prime Energy welcomed the President’s recognition, saying stable government policy has been critical to advancing new investments.
“The extension of SC 38 provided the regulatory certainty needed to resume exploration and drilling activities in Malampaya,” the company said. “We thank the Department of Energy for its support and look forward to bringing the Phase 4 wells into production later this year to help sustain the country’s indigenous gas supply.”
Beyond extending Malampaya’s lifespan, the discovery offers the Philippines valuable breathing room as it prepares for a more diversified energy mix that includes imported liquefied natural gas, renewable energy and, potentially, nuclear power. Every additional unit of locally produced gas helps reduce exposure to volatile global fuel prices while supporting more stable electricity generation.
The message from this year’s SONA was assurance to investors that policies remain predictable to unlock long-term capital in the country’s energy sector.
