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Filipino capabilities demonstrated in discovery of new gas reserves

Discovery made by all-Filipino companies

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Department of Energy (DOE) Secretary Sharon Garin underscored the capabilities of Filipinos in securing the country’s energy security following the discovery of a reservoir at Malampaya East 1 (MAE-1), about five kilometers east of the existing Malampaya field.

The reservoir is estimated to hold about 98 billion cubic feet of gas, with an initial test flow of 60 million cubic feet per day plus condensate. The find marks the first major milestone of the Malampaya Phase 4 Drilling Campaign under Service Contract 38, led by Prime Energy Resources Development B.V.

The discovery was achieved by a fully Filipino-led team composed of UC38, PNOC Exploration Corporation, and Prime Oil and Gas Inc.

"This milestone is a testament to the world-class capability of Filipino engineers in securing our country’s energy future," Garin said.

She described natural gas as a "critical bridge in our energy mix," supporting power reliability as renewables, energy storage, and grid upgrades are expanded.

"We will pursue this opportunity with discipline: maximizing value for Filipinos, upholding environmental stewardship, and ensuring that every milestone strengthens our national interest," Garin added.

In a separate statement, Prime Energy said the discovery increased Malampaya’s remaining recoverable volumes by about 30 percent.

"This gas discovery is a victory for the Filipino people," the company 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."

Prime Energy also thanked President Ferdinand R. Marcos Jr. for approving the extension of Service Contract 38 and the enactment of the Philippine Natural Gas Industry Development Act, which it said supports continued gas exploration.