Malampaya to deliver gas by 4th quarter

Prime Energy Resources Development B.V., the operator of the Malampaya deep water gas-to-power project, said it is on track to start producing gas by the first quarter this year following the completed drilling of one of the wells.

Prime Energy said it had a successful drilling, completion, and flow test of the Camago-3 well in offshore Palawan.

According to the company, the Camago-3 well produced gas at rates reaching up to 60 million standard cubic feet of gas per day, adding to the Malampaya’s remaining reserves.

The drilling of the well is part of the $893-million Malampaya Phase 4 development campaign.

Prime Energy said that the discovery in the Camago-3 is estimated to be approximately 2.5 times greater than the discovery at the Malampaya East-1 announced earlier this year.

“The single well alone effectively doubles the volume of gas that can be produced from Malampaya’s remaining reserves,” the company said.

Both wells are intended to extend the operating life of the Malampaya gas field by approximately six years, helping ensure the continued supply of indigenous natural gas to the Luzon power grid.

The Malampaya consortium, led by Prime Energy in collaboration with joint venture partners UC38 LLC, Prime Oil & Gas, Inc., and PNOC Exploration Corporation, continues to advance activities under the project on schedule.

After the completion of the two wells, the consortium is gearing up for the drilling of the Bagong Pag-asa exploration well, situated about 30 kilometers north of Malampaya.

If gas is confirmed, the well will undergo drill-stem testing to assess its production potential, Prime Energy said.