Filipino tycoon Ricky Razon leads big push in new gas drilling

Manila: Filipino billionaire Enrique "Ricky" Razon is diving deep into the country’s energy future — literally. 

His company, Prime Energy, is at the helm of a massive new undertaking: the Malampaya Phase 4 (MP4) gas drilling project, now officially underway off the coast of Palawan.

Prime Energy is a subsidiary of the Razon-led Prime Infrastructure Capital Inc. (Prime Infra), which owns a 40% interest in the consortium operating Service Contract No. 38 (SC 38), also known as the Malampaya project. 

This project supplies a significant portion of Luzon's electricity.

Energy security

The Department of Energy (DOE) is banking on this project to shore up the Philippines’ energy security, with DOE officer-in-charge Sharon Garin calling the launch of MP4 a “significant moment” for the country.

“This development not only strengthens our energy security and reduces our dependence on imported fossil fuel,” Garin said at the drill site ceremony on Thursday, according to a DOE statement.

The timing couldn’t be more crucial. The Malampaya gas field has been fueling up to 40% of Luzon’s power needs since it began operations in 2001.

But with reserves steadily declining, Phase 4 is seen as the next big bet to keep the lights on — literally.

3 new wells

The MP4 project will involve drilling three new wells: Camago-3, Malampaya East-1, and Bagong Pag-Asa-1. 

The goal is to tap deeper reserves and extend the life of the country’s only indigenous natural gas source. 

And leading the charge is Razon’s Prime Energy, which took over the Malampaya operations after Shell sold its stake in 2022.

To kick things off, the state-of-the-art 7th generation drillship Noble Viking has arrived at the Bagong Pag-Asa site and will begin drilling operations immediately. 

If everything goes as planned, the first gas delivery from MP4 is expected by the fourth quarter of 2026.

“This occasion marks a significant moment not only for the SC 38 consortium but also for the government, and more importantly, for the Filipino people we are committed to serving,” Garin added.

How big is this project?

It’s a make-or-break for the country’s energy mix. 

Energy analysts have long warned about Malampaya’s decline, and unless new sources are developed quickly, the country could be forced to rely more on imported liquefied natural gas (LNG) — which is not only expensive but also vulnerable to global price shocks.

The MP4 project aims to change that.

Homegrown power

By drilling new wells and extending Malampaya’s production life, Razon’s team could help buy the Philippines several more years of cleaner, homegrown power, while also reducing dependence on coal and oil imports.

According to a Philippine Star report, Prime Energy’s aggressive move into upstream gas signals the tycoon’s growing interest in energy infrastructure — an area he sees as essential for long-term national development.

Razon’s Prime Energy delivers with MP4, it won’t just keep Luzon’s grid running, it could mark a turning point in the Philippines’ energy independence narrative.