ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

A Peek into Philippine Natural Gas and Oil Resources

Updated on December 7, 2018
All photo credits to Jurvetson (Flickr Creative Commons image-Attribution License)
All photo credits to Jurvetson (Flickr Creative Commons image-Attribution License) | Source

Asia is home to some of the biggest natural gas resources in the region. Natural gas, considered as one of the cleanest and safest source of energy from fossil fuels, is composed mostly of methane. It is one of the most abundant hydrocarbons in the South China Sea. In fact, many other countries in Southeast Asia like Malaysia and Thailand contain similar natural gas deposits.

In the same vein, the Philippines has a considerable natural gas deposit although large-scale commercial production is not yet in place. The current production of natural gas in the country is not enough to sufficiently meet the local demand.

Natural Gas Reserves

According to the Oil and Gas Journal report, the Philippines holds an estimated 3.48 trillion cubic feet (Cbf) of national gas reserve as of 2008, majority of which is concentrated in the Malampaya offshore field. On one hand, the CIA World Fact Book (2009) estimates it at 98.54 billion cubic m while gas consumption was at 2.94 billion cubic m by 2008 estimates.

Malampaya Gas Field

The Malampaya gas field is a natural gas reserve located in the West Philippines Sea. The Malampaya Project which started in 2002 initiated the Phillippine natural gas industry. It is set to power the country with natural gas for the next twenty (20) years.

Sampaguita Gas Field

With an estimated 3.5 to 5 Tcf of natural gas, the Sampaguita field is being considered as another possible source of natural gas in the country. Forum Energy plans to conduct test drills in the area to confirm the natural gas reserves and the viability of a liquefied natural gas project (LNG) in the future.

Oil Reserves

A Department of Energy (DOE Philippines) data indicates that at the end of 2005, the country has total petroleum reserves of 456 million barrels of Fuel Equivalent (BFOE). This figure is composed of 25 million barrels of oil, 2,136 Bcf of natural gas and 54 million barrels of condensate. The country consumed 299 thousand barrels of oil a day in 2007 while oil production for the same year is at 336 thousand barrels which means that the country's production is just barely for local demand.

Malampaya Offshore Oil Field

The Philippines does not have a significant oil production history but this landscape has changed with the discovery of new offshore and deep sea oil deposits in the Malapaya field in 1990 by Shell Philippines. The Malampaya Oil rim is deemed to hold the country’s largest oil reserve.

This oil-rich deposit lies under the field’s natural gas deposits. Shell Philippines obtained full ownership of Service Contract 38 (SC38) and made one of the largest investments in the country’s gas industry by laying a 504-kilometer pipeline and establishing a gas facility in Batangas province. The Malampaya field has supplied clean fuel to the Luzon grid since 2002 by virtue of the government-initiated Malampaya Gas-to-Power project supplying three combine cycle gas turbines. The Malampaya field has over 28 service contracts as of 2007. Its discovery paved the way for the government’s Natural Vehicle Program for Public Transport (NGVPPT).

Galoc Oil

All photo credits to Galoc Production Company (GPC Copyrights)
All photo credits to Galoc Production Company (GPC Copyrights)

Galoc Oil Fields, Palawan, Philippines

The field located at 60 km northwest of Palawan has an estimated oil reserve of 10 million barrels and has produced over 5.4 million barrels or half of its reserves by June of 2010. Australian firm Otto Energy Ltd. I is part of the joint venture operating the Galoc Oil fields and holds a 31.38% stake in Galoc Production Co. (GPC). GPC operates the oil field under SC14-C. The daily production rate of the oil field has declined from 11,000 barrels per day (bpd) to 8.750 bpd. The Galoc Oil field went onstream in 2008.

The Philippines offers several incentives to petroleum service contractors under the Oil and Development Act of 1972 or Presidential Decree 87. The Business Monitor International’s (BMI) Philippine Oil and Gas report's latest forecast poised the Philippines as petroleum supplier of 0.76% while accounting for 1.11% of Asia Pacific’s regional oil demand by the year 2014. Though the Philippines is predicted to suffer a slight decline in oil production in the years ahead, positive growth is expected in the natural gas industry owing to the concrete efforts of the Philippine government in collaboration with noted international players. With the Philippines currently ranked as the 7th in the Downstream Business Environment ratings, the future indeed looks bright for the Philippine oil and natural gas sector.


    0 of 8192 characters used
    Post Comment
    • profile image

      David geapin 

      3 years ago

      Why does the Philippine not increase it's Solar and goethermal energy .There is so much potential to be got. The cost of solar solar equipment is falling rapidly .With a populaton of over 100 million and the population explosion, more power will be needed . This problem will not go away. Why does the Philippines insist on coal fired plants ?

    • profile image

      mr. rigger 

      7 years ago

      countries all over the world are getting from the OPEC and philippines is not a member, and United states has enough production and highly equip for producing energy and phi. is non independent in the investor for rig up the production.

    • gmmurgirl profile imageAUTHOR

      Shan Moore 

      7 years ago from Philippines

      Yes Mr. Rigger, you are right. Most of the resources are not yet developed this is why production in the country is not even enough for its own energy needs.

    • profile image

      Mr rigger 

      7 years ago

      not enough production and rigger. coz its new discover

    • profile image

      Mr. Operator 

      8 years ago

      why the Philippines need to import oil from the Middle east, and suffer on the highly expensive price of gasoline?


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)
    ClickscoThis is a data management platform studying reader behavior (Privacy Policy)