Philippines: New gas drilling begins, Malampaya’s quest off Palawan unfolds

Manila: In the sunny seas off Palawan, the Philippines has kicked off a thrilling new chapter in its energy story — the eagerly awaited drilling phase under the Malampaya Service Contract 38 (SC38) has begun, with all the drama and excitement of a blockbuster adventure. 

The star of the show? 

The 7th-generation drillship Noble Viking, which arrived at the drill site on June 19, 2025, ready to tunnel into the depths of the Malampaya gas field and uncover fresh supplies of natural gas, according to the Department of Energy (DOE).

You might wonder: “Why the sudden urgency to drill now, when Malampaya has been around since 2001?” 

Well, here’s the scoop: Malampaya’s initial gas wells have been fuelling Luzon’s power grid for over two decades, covering up to 40% of Luzon’s power demand at their peak. 

But those original wells are slowly winding down. The Service Contract No. 38, which governs the field, was renewed just last year in April 2023, extending operations until 2039. 

This renewal unlocked the green light for new exploration and drilling to extend Malampaya’s life and boost local energy security, according to RTVM, the TV channel of the presidential palace.

But it wasn’t easy to accelerate this project earlier. 

The Philippines had to navigate a maze of permits, environmental clearances, and technical challenges. 

Plus, the global energy market has projects racing simultaneously, driving up costs and demand for drilling services. 

Only recently, with the contract extension and strong government-private sector cooperation, was the pace boosted — making this “drill, baby, drill” moment possible, according to Manila daily Tribune.

DOE Officer-in-Charge Sharon Garin captured the national mood perfectly during the welcoming ceremony for Noble Viking (previously known as the Maersk Viking): “This development not only strengthens our energy security and reduces our dependence on imported fuel but also benefits consumers and supports our industries and jobs.” 

She emphasised that every drilled well and produced megawatt is a vital step toward a secure, inclusive, and sustainable energy future for the Filipino people. 

Garin also lauded the cooperation between the government and Prime Energy — the private consortium behind the project led by Filipino billionaire Ricky Razon— as a model of teamwork in powering the nation responsibly, the Philippine Star reported.

The timing and urgency come down to a few key reasons:

The drillship Noble Viking is no ordinary vessel — it’s a high-tech, 7th-generation offshore mobile platform built for ultra-deepwater drilling. 

Equipped with cutting-edge automation, safety systems, and dynamic positioning capabilities, it can drill with precision in the challenging underwater terrain of the Malampaya field.

Noble Viking is currently drilling three new wells:

The first two are development wells, while Bagong Pag-asa is an exploration well aimed 15 kilometers from the main field, testing new territory for oil and gas presence to further boost production, according to the DOE.

There’s palpable excitement about what these drills might uncover. 

If the Camago and Malampaya East wells deliver as expected, Malampaya’s life could be extended well into the 2030s, maintaining a stable indigenous gas supply. 

Meanwhile, Bagong Pag-asa is the wild card — this exploration well could reveal new oil and gas reserves that would be a game-changer for the Philippines, potentially increasing domestic hydrocarbon resources and further reducing imports.

Although the results won’t be known until drilling completes (Camago-3 is expected to finish by August 2025), the government and Prime Energy remain optimistic. 

President Marcos Jr.'s recent fly-by inspection of the drilling campaign illustrates the high-level political will driving this effort toward success.

The Malampaya Phase 4 drilling campaign is a vibrant, game-changing moment for the Philippines. 

Against a backdrop of global energy uncertainty, the arrival of the Noble Viking drillship, owned by US-based Noble Corp, off Palawan signals fresh hope for indigenous energy, more secure power supply, and, perhaps, new riches beneath the waves. 

It’s a story of timing, teamwork, technology, and the relentless spirit to drill ahead for a more energy-secure future.