Prime Energy drives Philippine energy independence through Malampaya expansion

Prime Energy Resources Development B.V. is advancing the Philippines’ energy transition by strengthening the role of indigenous natural gas in achieving energy independence and supporting renewable power generation.

“In this era of energy transition, where risks are real and opportunities are emerging across a shifting power map, our task is clear: to make our very own Filipino gas a bridge that unifies the industry and serves as a force for good for Filipinos,” said Prime Energy President and CEO Donnabel Kuizon Cruz during the PowerTrends 2025 International Business Forum on October 2.

Cruz emphasized that indigenous gas remains crucial in stabilizing both supply and electricity prices while supporting the country’s renewable energy targets.

“Apart from stabilizing the reliability and cost of generation, indigenous gas production is one of the government’s key revenue sources and economic enablers,” she said.

Since beginning operations in 2001, the Malampaya project has supplied up to 40 percent of Luzon’s energy demand and generated $13.9 billion in revenues for the Philippine government.

Under the leadership of the Department of Energy (DOE), Prime Energy and its Service Contract (SC) 38 consortium partners—Prime Oil & Gas Inc., UC38 LLC, and state-owned PNOC Exploration Corporation—have restarted exploration activities through the Malampaya Phase 4 project. The $893-million initiative represents the largest upstream investment in the Philippines in more than a decade.

The project involves drilling three new wells—Camago 3, Malampaya East 1, and Bagong Pag-asa 1—to extend the life of the Malampaya gas field, with new gas output targeted by 2026.

Aligned with the Philippine Energy Plan, the country aims to increase the renewable energy share in its power generation mix to 30 percent by 2030 and 50 percent by 2040. Natural gas plants are seen as key in this transition, operating alongside intermittent renewable sources while emitting about 50 percent less carbon dioxide than coal-fired plants.

“Through the collective efforts of brave Filipinos, the runway has been set for a new era of exploration in the Philippines. MP4, the first project of an all-Filipino-led consortium, is the first step. We are definitely going all-in to generate more indigenous energy,” Cruz said.

She added, “Let us harness Filipino resolve to build a sustainable, affordable, and secure future powered by our own resources, our own people, and our shared vision.”

Malampaya is a national government project under the DOE operated by Prime Energy and its joint venture partners UC38 LLC, PNOC Exploration Corporation, and Prime Oil & Gas Inc. under Service Contract No. 38.