Prime Energy’s $893 Million Investment Breathes New Life into Philippines’ Key Energy Asset
In a significant development for the Philippines’ energy landscape, Prime Energy—under the control of ports and casino magnate Enrique Razon Jr.’s Prime Infra Holdings—has announced plans to invest $893 million alongside its partners to drill additional offshore wells at the Malampaya gas field. This investment follows the exciting discovery of a new gas reserve at Malampaya, which stands as the country’s sole producing offshore natural gas field. The substantial financial commitment represents the fourth phase of Malampaya’s development and will fund the drilling of multiple new wells, including the promising Malampaya East-1 site where engineers recently confirmed the new natural gas discovery.
The drilling operations at Malampaya East-1 have revealed a previously untapped reservoir containing an impressive 98 billion cubic feet of additional natural gas and associated condensate. According to Prime Infra, this newly discovered volume equates to approximately one-third of Malampaya’s remaining productive gas reserves. This discovery comes at a critical time, as the existing Malampaya reserves had been projected to deplete between 2027 and 2029, creating uncertainty around the Philippines’ energy security. The gas field, situated about 80 kilometers northwest of Palawan island in the West Philippine Sea, is operated by Prime Energy in partnership with Davao entrepreneur Dennis Uy’s Udenna Corporation and the state-owned PNOC Exploration Corporation.
This investment in Malampaya represents just one component of Enrique Razon’s growing energy portfolio. Razon has been strategically increasing his energy investments over recent years, with his company Prime Infra agreeing to purchase a 45% stake in the Malampaya gas field in 2022. Last May, Prime Infra further expanded its energy footprint by agreeing to acquire a 60% stake in the gas-fired power plant assets of First Gen Corporation—owned by the Lopez family—for $896 million. These moves demonstrate Razon’s commitment to strengthening his position in the Philippines’ energy sector while addressing critical infrastructure needs in the country.
The discovery at Malampaya East-1 could prove transformative for the Philippines’ energy landscape. By potentially extending the productive life of the Malampaya field beyond its expected depletion date, the new reserves offer the country valuable time to develop alternative energy sources while maintaining the benefits of domestic natural gas production. Malampaya has been a cornerstone of the Philippines’ energy infrastructure, providing fuel for power plants that generate electricity for millions of homes and businesses. The field’s continued operation helps reduce the country’s dependence on imported fuels and contributes to greater energy security and price stability.
The significance of this investment extends beyond immediate energy concerns. The Malampaya field has been a showcase of successful public-private partnership in the Philippines, generating substantial revenue for the government while providing critical energy resources. The new development phase represents continued confidence in this model and in the potential of Philippine natural resources. Furthermore, the project will likely create jobs and stimulate economic activity in related sectors, from specialized engineering services to local support industries. In a region where energy demand continues to grow rapidly, securing domestic supplies remains a strategic priority with both economic and geopolitical implications.
With a real-time net worth estimated at $14.3 billion, Enrique Razon stands among the wealthiest business leaders in the Philippines. His diverse portfolio includes significant stakes in global port operator International Container Terminal Services Inc. (ICTSI), gold producer Apex Mining, and Bloomberry Resorts, which operates two casino resorts in Metro Manila. Razon’s expansion into energy infrastructure complements his existing investments in critical national assets and positions him as a key player across multiple sectors of the Philippine economy. As the Malampaya development progresses, all eyes will be on whether this substantial investment will yield the extended energy production timeline that would benefit both Razon’s business interests and the nation’s energy security for years to come.
