Prime Energy, operator of Service Contract No. 38, marks a historic milestone for Philippine energy security with the successful drilling of the Malampaya East-1 reservoir. The new find, announced by President Ferdinand R. Marcos Jr. on Monday, Jan. 19, 2026, confirms 98 billion cubic feet of natural gas—ending a decade-long discovery drought.

Prime Energy, operator of Service Contract No. 38, hailed the discovery of a new natural gas field at Malampaya East-1 as a breakthrough for Philippine energy independence.

The find, announced by President Ferdinand Marcos Jr., is the first natural gas discovery in Philippine territory in over a decade. The new field reinforces Malampaya’s status as the nation’s sole indigenous gas source, boosting the existing field’s remaining recoverable volumes by an estimated 30%.

“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 revitalise the indigenous natural gas sector. Today, we are delivering on that commitment.”

“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,” Prime Energy added.

Malampaya East-1 is a newly discovered, previously untapped reservoir, confirming the presence of 98 billion cubic feet (BCF) of additional natural gas volume and associated condensate. Initial well data indicate volumes equivalent to around one-third of the remaining producible Malampaya gas volumes.

The discovery was achieved by a fully Filipino-led team, reflecting the country’s growing capability in upstream energy development. Prime Energy operates SC38 together with its partners UC38 LLC, PNOC Exploration Corporation, and Prime Oil and Gas Inc.

The next phase of the Malampaya 4 drilling campaign involves the completion and testing of Camago-3, followed by the drilling of Bagong Pag-asa exploration well.

Malampaya Phase 4 has been certified as a Project of National Significance. Since its inception, the Malampaya project has generated more than US$13.9 billion in revenues for the Philippine government, while significantly reducing dependence on imported fuels.

The Malampaya Project

The Malampaya Deep Water Gas-to-Power project is one of the largest and most significant industrial endeavors in Philippine history. A joint undertaking of the Philippine national government and the private sector, the project is spearheaded by the Department of Energy (DOE), and developed and operated by Prime Energy on behalf of joint venture partners Udenna Corporation and the Philippine National Oil Company-Exploration Corporation.

Since it began operations in 2001, the Malampaya project has produced cleaner-burning natural gas which supplies four power plants in Luzon, the country’s largest island, with a combined capacity of 3,200 megawatts.

Malampaya is benefiting the country in countless ways, including reducing oil imports, ensuring a more stable supply of cleaner energy from an indigenous resource and meeting up to 20% of the country’s energy requirements.

In 2013, the company embarked on Malampaya Phases 2 and 3, which aimed to maintain the level of gas production to fulfill commitments under existing gas sales agreements, thus ensuring the steady supply of natural gas to power the Luzon electricity grid.

Two additional production wells were successfully installed in 2013 to signify the completion of Malampaya Phase 2. In 2015, Malampaya Phase 3, which involved the design, fabrication and installation of a new Depletion Compression Platform was completed. This is the first offshore platform to be fully built in the Philippines, thus enhancing local employment opportunities and bringing technical expertise into the country.

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