There is a good possibility the Malampaya field may hold enough natural gas deposits to last us decades.

FIRST PERSON

- ALEX MAGNO

This should be enough lead time to fully transition to renewable energy (RE) to meet our energy demands.

The drilling ship Noble Viking is now in the Malampaya area. It is there to drill three new wells: the Camago, Malampaya East and Bagong Pagasa. Together, they constitute what is called Malampaya Phase 4. It commences 21 years after the first wells were drilled and indigenous natural gas became commercially available.

Gas supplied by the Malampaya wells account for at least 20 percent of energy for the Luzon grid. Drilling operations have yielded over $13 billion in royalties for government. This is a significant revenue source apart from saving the country billions of dollars in energy imports.

The first generation of Malampaya wells began operating 21 years ago. The exploration and drilling were undertaken by oil giant Shell, later to be joined by Chevron. Because of the flawed policy environment here and more profitable options elsewhere, the two oil giants decided to sell their stake at the Malampaya field. The operation was eventually taken over by Prime Energy led by business tycoon Enrique Razon Jr.

On May 15, 2023, President Ferdinand Marcos Jr. signed the extension of Service Contract 38 which governs the operations of the Malampaya gas field. The 15-year extension brings the life of the service contract to 2039. This provides enough of a horizon to encourage new exploration and drilling.

The extension of Service Contract 38 brings far-ranging consequences. It was a bold act of statesmanship, guided by the best scientific evidence.