Prime Energy forms Malampaya advisory council

MANILA, Philippines — Prime Energy, a subsidiary of Enrique Razon’s Prime Infrastructure Capital Inc., has formed an advisory council for the multi-year exploration and development programs of the Malampaya deep water gas-to-power project.

Prime Energy, which has recently completed its acquisition of the 45-percent operating stake in Malampaya, has convened the advisory council composed of technical experts and key industry leaders to ensure the long-term success of the company’s exploration and development programs.

The advisory council is set to provide technical expertise and assist the management team headed by Prime Energy general manager Sebastian Quiniones in crafting necessary structures for implementation.

It will likewise serve as a sounding board for fundamental actions such as engaging with authorities, according to Prime Infra.

“The new advisory council initiated by Prime Energy for the Malampaya project will serve the purpose of providing strategic advice and technical guidance to support me and the board in this critical time when the company’s exploration and development programs are about to commence to prolong the gas supply, which is becoming increasingly scarce,” Quiniones said.

The members of the advisory council include Cesar Buenaventura, the first Filipino president of Pilipinas Shell Petroleum Corp. (PSPC), Jose Ibazeta, Prime Metro Power director and a former Power Assets and Liabilities Management Corp. president and CEO and former acting Secretary of the Department of Energy (DOE), and Rufino Bomasang, former Philippine National Oil Company – Exploration Corp. president and CEO and former Office of Energy Affairs (forerunner of the DOE) executive director.

Also part of the newly formed council are Antoine Bliek, former Shell project manager for Malampaya Phase 2 and 3, and Jose Jerome Pascual III, former Shell Philippines Exploration BV (SPEX) finance director and former PSPC chief finance officer, chief risk officer, vice president-finance and treasurer.

“Backed by technical experts and specialist contractors from around the globe, Prime Energy is well equipped to plan and execute viable projects to extract more gas from reservoirs in the Service Contract 38 area covering the Malampaya project, and tie these to the existing operating assets,” Prime Infra said.

Prime Infra in November 1 last year assumed full ownership and control of SPEX after a successful transition process for a safe and seamless handover of operations.

The move marked the initial foray of Prime Infra into the upstream energy market.

Prime Infra said all concerned parties of the Malampaya project, including the joint venture partners in the consortium and the DOE, agree that urgent action is needed to address the depleting supply of gas.

It said that by 2025 to 2026, gas exports would reach near technical minimum before new gas can be sourced.

According to the company, the success of the multi-year exploration and development programs of Prime Energy will be made possible through the full support of the newly formed advisory council, the DOE and the Malampaya consortium partners.

“The Prime Infra group supports Prime Energy in other areas such as project financing, supply chain and logistics, human resources, and government and external relations,” Prime Infra said.

The license of the Malampaya consortium, which is composed of Philippine National Oil Co.-Oil Exploration, UC38, and Prime Energy, is set to expire in 2024.

The consortium is looking to secure a contract extension to sustain and expand gas production in light of the growing electricity demand.

The Malampaya project is one of the country’s most important power assets, as it produces natural gas to power plants in Batangas City that power up to 20 percent of the Luzon’s total electricity requirements.