The Philippine Department of Energy (DOE) has announced significant movements concerning the Malampaya gas field, with expectations for drilling activities to commence before the end of May, in a bid to avert potential production curtailments by 2029. Energy Undersecretary Alessandro O. Sales provided updates on the fourth phase of the Malampaya project during a briefing on May 15, revealing that drilling vessels, including the Noble Viking and three supporting ships, are currently stationed in Labuan, Malaysia.

These vessels are preparing to load essential materials ahead of their deployment to northwest Palawan.

The arrival of the drilling rig in Palawan has been postponed to the latter half of June, attributed to delays from ongoing operations in Malaysia.

Once the rig reaches the Philippines, drilling operations for three wells are slated to begin, with an anticipated duration of approximately 150 days, concluding around late October.

Following the drilling, immediate efforts will be made to connect the two new wells to existing production facilities through hook-up and pipe-laying, targeting a start in the last quarter of 2023.

Should the drilling yield successful results, the Malampaya gas field's operational lifespan could extend to 2034. The third well, referred to as “Bagong Pag-Asa,” is projected to enhance production volumes further.

Sales emphasized that without these continued efforts, the gas field is on track to be fully optimized by 2029.

In tandem with developments at Malampaya, Energy Secretary Raphael P.M. Lotilla raised concerns regarding increasing insurance premiums for existing coal-fired power plants amid a coal moratorium in the country.

Following discussions with various insurance firms, it was revealed that insurers harbor concerns over the viability of the coal sector, particularly as multiple plants have ceased operations.

Lotilla indicated that financial institutions, including banks and insurance companies, are perceiving heightened risks associated with coal.

This perception has resulted in elevated insurance premiums for coal projects.

He noted, "One of the issues that was raised was they said, ‘Are you already closing down your power plants?’ Part of the answer is with the insurance industry because they are the ones who have shown reluctance in terms of providing reasonable rates of insurance for the power sector, particularly for coal-fired power plants that are existing."

Currently, coal constitutes approximately 63 percent of the Philippines' power generation, with renewable energy accounting for about 22 percent.

The DOE is striving to secure financing for both existing and future coal plants while also addressing the impact of rising insurance costs.

Lotilla reiterated the stability of the Philippines' legal and regulatory framework within the energy sector, which he believes should reassure insurance entities.

He mentioned the implementation of the Philippine Competition Law and highlighted the government's objective to foster a more vibrant energy sector as the administration progresses into the latter half of the President's term.