The big three domestic oil firms warned that their fuel inventories may run out next month if the problem in the Strait of Hormuz is not resolved, but President Ferdinand “Bongbong” Marcos Jr. disputed this, saying the supply is good until June.
The oil companies — Chevron Philippines, Shell Philippines and Petron Corp. — and industry groups — the Philippine Institute of Petroleum (PIP) and the Independent Philippine Petroleum Companies Association — said their estimates of current petroleum and fuel inventories were significantly tighter and more pessimistic than that of the Department of Energy or the President.
The estimates were made at the Senate’s Proactive Response and Oversight for Timely and Effective Crisis Strategy Committee hearing on 26 March.
The President said the government continues to seek other sources of crude oil.
“But we will continue to look for supply. We will also continue supporting our commuters to help ease the burden caused by the ongoing conflict in the Middle East,” Marcos said in his message yesterday at the Ninoy Aquino International Airport during an event.
“It is more expensive to import already refined diesel. And we already have a supply of crude oil, sufficient until 30 June,” he added.
Camago to the rescue
Energy Secretary Sharon Garin on Friday said more crude oil deliveries are expected in the coming days following the recent arrival of fresh supplies, as the government moves to stabilize the country’s fuel inventory.
She also highlighted the significance of the recent natural gas discovery at the Camago-3 well in offshore Palawan, part of Service Contract No. 38 secured by Prime Energy.
She said additional output from Camago-3 is expected to strengthen the domestic energy supply at a lower cost compared to imported fuel.
Prime Energy, the operator of Service Contract 38, said that Malampaya Phase 4 (MP4) is firmly on track to deliver a fresh supply following a significant drilling breakthrough at Camago-3.
Camago-3 delivered up to 60 million standard cubic feet per day (mmscf/d) during testing, a result that substantially boosts Malampaya’s remaining reserves.
“The successful completion of Camago-3 demonstrates the strength of the Filipino workforce and the close collaboration between government and industry,” Prime Energy said.
Camago-3 holds about 2.5 times the recoverable gas volumes of the Malampaya East-1 discovery announced in January. The new well doubles Malampaya’s extraction from its remaining reserves.
Combined, the two discoveries are expected to extend the gas field’s life by roughly six years, a boost seen as critical to stabilizing Luzon’s power supply.
For the first time since the field began commercial operations in 2000, new subsea pipelines are being installed, reviving large-scale offshore construction activity and strengthening long-term energy security.
The next step in the campaign is the drilling of Bagong Pag-asa, an exploration well located 30 kilometers north of Malampaya. If gas is confirmed, drill-stem testing will be conducted to assess production potential.
Malampaya continues to be one of the country’s strongest buffers against global fuel volatility.
Its fuel cost, at P4.80 per kilowatt-hour (kWh), is less than half the roughly P10.30-per-kWh cost of imported LNG.
MP4, certified as a Project of National Significance, forms part of an $893-million development plan. Since the field’s inception, Malampaya has delivered more than $14 billion to the national government.