Prime Energy Resources Development B.V. is allocating $187 million in capital expenditures next year, or approximately more than P10.4 billion at the current rate and a significant portion of it will be used to jumpstart the Malampaya Phase 4 development.

The company, led by business magnate Enrique K. Razon Jr., said on Thursday that it plans to use part of the budget to purchase drilling equipment, subsea equipment, umbilicals, and pipelines, as well as secure the drilling rig.

The Malampaya Phase 4 development consists of the drilling of at least two deepwater wells in Camago and Malampaya East which will start in 2025.

Prime Energy Managing Director Donnabel Kuizon Cruz disclosed that the planned drilling and development requires an investment of more than $600 million.

Prime Energy pointed out that successful drilling could lead to the commercial production of natural gas that could augment the country's power supply by 2026.

Once viable gas supplies are uncovered within the Malampaya Phase 4, Prime Energy said it is ready to install necessary pipelines that would be tied into the existing Malampaya production facilities.

As it executes its massive plan, Prime Energy and its partners sought the support of the Department of Energy or DoE to ensure that there is a market for the new gas volumes, and to streamline and simplify the permits and requirements imposed by various government agencies.

The company added that government support would ease out challenges that could affect the "on time and within budget" completion of Malampaya Phase 4.

Prime Energy clarified that China has never claimed the Malampaya contract area. Exploration started in 1988, development in 1998, and production in 2001 for SC 38.

Since 1988, China has not interfered in any Malampaya petroleum operations. Prime Energy is optimistic that there will be no intervention or disruption from China during drilling and development activities in 2025 and 2026.

Prime Energy and its partners secured the renewal of Service Contract No. 38 for an additional fifteen years up to 2039.