The Malampaya Service Contract 38 Consortium led by Prime Energy of billionaire Enrique K. Razon Jr. is investing $895 million for the drilling of two new wells to increase the current Malampaya gas production.
Donnabel Cruz, president and CEO of Prime Energy Resources Development B.V., said in a speech at the recent “Strengthening Philippines-France Cooperation for a Sustainable Blue Economy,” hosted by think tank Strabase Institute said that the consortium continues to invest in the Philippines.
“We are investing $895 million,” stated Cruz. The investment will be used for the drilling of two new wells to increase the production of Malampaya. The drilling will happen this year and gas production is expected by next year.
“We are also drilling a third well. It’s an exploration well,” she added. She expressed hope that by this effort, “We are going to encourage more of these kinds of efforts from companies who would like to see the Philippines flourish.”
Cruz noted that Prime Energy and their partners are spearheading the largest upstream oil and gas investment in the Philippines since the last decade. From 1989 to 2015, an initial investment $2.9 billion had been poured for the Malampaya infrastructure. “So, we continue to do this. We continue to believe in the country,” Cruz added.
The Malampaya gas field has generated almost US$14 billion of government revenues as of February 2025, she said. And over the years, especially during its peak, Malampaya has reduced the country’s fuel importation by 30 to 50 percent, delivering significant foreign exchange savings.
