Prime Energy has confirmed a new gas discovery at Camago-3 offshore Palawan, adding further volumes to the Malampaya area and supporting future domestic gas supply in the Philippines.
The Camago-3 well flowed gas at rates of up to 60 million cubic feet per day during testing, confirming a substantial addition to remaining gas resources linked to Malampaya. The field’s facilities can produce at least 500 MMcfd of gas, although reported output has been declining for seven years and had fallen to about 260 MMcfd of gas and condensate by 2024.
According to Prime Energy, Camago-3 is significantly larger than the Malampaya East-1 discovery announced in January. The company said recoverable gas volumes are estimated at about two-and-a-half times those of MAE-1. Since MAE-1 confirmed 98 Bcf of gas that can be developed through existing Malampaya infrastructure, Camago-3 points to a larger volume that could also be tied back through the same system. Prime Energy said the Camago-3 result alone effectively doubles the gas volume that can be produced from Malampaya’s remaining reserves.
The operator said indigenous gas can be supplied at 4.80 pesos per kWh, compared with about 10.30 pesos per kWh for imported LNG. It said expanding domestic gas supply would help reduce exposure to swings in international fuel costs.
Prime Energy described the result as evidence of close cooperation with the Philippine government and the strength of the local workforce. The company also said large-scale offshore construction capability is being restored in the country for the first time since 2000, while the Malampaya 4 project remains on track for first gas in the fourth quarter of 2026.
The next step is the Bagong Pag-asa wildcat, the final well in Prime Energy’s $600 million three-well drilling campaign. The programme is aimed at finding additional gas resources that can be tied back to the Malampaya facilities under the Malampaya 4 project.
For the campaign, Prime Energy contracted drillship Noble Viking from Noble Corporation at a day rate of $499,000. According to the contractor’s fleet status report, the rig’s next assignment will be a one-well job for Shell offshore Brunei Darussalam at a dayrate of $470,000, before mobilising to Papua New Guinea. TotalEnergies has also secured the unit for one firm well there, estimated at 47 days, with three optional wells.
Prime Energy operates SC 38 on behalf of partners PNOC Exploration Corporation and Prime Oil & Gas, along with UC38.
