First Natural Gas Discovery in a Decade in the Philippines Looks Promising: 98BCF Gas-in-Place

     It has been announced that natural gas has been discovered offshore in the Philippines for the first time in a decade near the Malapaya gas field.

     Reuters reports:

“Philippine President Ferdinand Marcos Jr said on Monday gas and condensate had been found at a well close to the existing Malampaya gas field off the island of Palawan, the country's first natural gas discovery in more than a decade.”

“The well, called Malampaya East One or MAE-1, is estimated to contain about 98 billion cubic feet of gas in place, equivalent to almost 14 billion kWh of electricity in one year, Marcos said.”

“Initial test results show that the well flowed at 60 million cubic feet per day. This indicates the well has the potential to produce even more, confirming that it is a high‑productivity resource comparable to the original Malampaya wells," Marcos said in a post on Facebook.

     The project is operated by the Service Contract 38 consortium, a local venture led by Prime Energy in partnership with UC38, PNOC Exploration Corporation, and Prime Oil and Gas Inc. It is always good news when domestic sources of resources can be tapped. The Philippines has relied on coal for decades, but is importing more and more LNG, so that 2025 will be the first year in decades that coal use will decline year-over-year. Producing more domestic gas will help as well.

"Aside from natural gas, the discovery also includes condensate, a high‑value liquid fuel. These additional resources can help support the government's efforts to stabilize our power supply," Marcos said.

“In 2023, Marcos signed an agreement extending the production contract for the Malampaya natural gas block by 15 years and allowing the operator to drill new wells as it seeks to boost output, which has been declining.”

“Before this discovery, experts projected the field to run dry by 2027.”

     The Malampaya gas field was discovered in 1989, with first gas flowing in 2001. Shell and Chevron were involved in the project’s discovery and development. The Philippine government company had a 10% stake. In the late 2000s, there was government corruption associated with the funding of the project. Below are some details of the field.

     The new well is just to the east of the producing field. The field is in the South China Sea and produces from carbonate reefs of Oligocene and Miocene age. 

     Reef fields notoriously have high porosity and permeability, but cementation diagenesis can impede that porosity and permeability in parts of the reservoir and preserve them in other parts of the field, as explained below in a 2003 paper abstract about the field.

   

References:

 

Philippines makes first natural gas discovery in more than a decade. Reuters. January 18, 2026. Philippines makes first natural gas discovery in more than a decade

Malampaya gas field. Wikipedia. Malampaya gas field - Wikipedia

Reservoir Characterisation of the Malampaya Field, a Carbonate Reefal Build-up in the Philippines. Nick Dancer. Proceedings of the 2003 South East Asia Petroleum Exploration Society (SEAPEX) Conference, 2003. Pages 1-36. AAPG Datapages/Archives: Reservoir Characterisation of the Malampaya Field, a Carbonate Reefal Build-up in the Philippines