Insider Spotlight
The find, announced by President Marcos Jr., is the first natural gas discovery in Philippine territory in over ten years and reinforces Malampaya’s role as the country’s only indigenous gas source.
Why it matters
Malampaya has long been a cornerstone of the Philippines’ energy mix, supplying about 20 percent of Luzon’s electricity. With the field in decline, the absence of new discoveries had raised concerns about heavier reliance on imported fuel.
Prime Energy said the Malampaya East-1 discovery could increase the project’s remaining recoverable gas volumes by an estimated 30 percent, easing near-term supply risks.
What was found
Malampaya East-1 is a previously untapped reservoir that confirmed the presence of 98 billion cubic feet of natural gas, along with associated condensate. Initial well data suggests volumes equivalent to roughly one-third of the remaining producible gas from the existing Malampaya field, the company said in a statement on Jan. 19, 2026.
“This gas discovery is a victory for the Filipino people,” Prime Energy said. “When we assumed operatorship, we committed to the President and the nation to breathe new life into Malampaya and revitalize the indigenous natural gas sector. Today, we are delivering on that commitment.”
The bigger picture
Prime Energy credited recent policy support for helping unlock new exploration.
“We thank President Marcos for his leadership, particularly for approving the extension of SC38 and for the enactment of the Philippine Natural Gas Industry Development Act, which provides the stability and confidence needed to pursue continued exploration of additional gas resources,” the company added.
The discovery was led by a fully Filipino team, highlighting growing local capability in upstream energy development. Prime Energy operates Service Contract No. 38 together with UC38 LLC, PNOC Exploration Corp., and Prime Oil and Gas Inc.
What’s next
The Malampaya 4 drilling campaign will continue with the completion and testing of the Camago-3 well, followed by the drilling of the Bagong Pagasa exploration well. Malampaya Phase 4 has been certified as a Project of National Significance.
Since its inception, the Malampaya project has generated more than $13.9 billion in revenues for the Philippine government, while significantly reducing dependence on imported fuels, underscoring the economic and strategic impact of the latest discovery. — Daxim L. Lucas | Ed: Corrie S. Narisma
