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Noble Starts Drilling Operations for Malampaya Phase 4 Project

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Key Takeaways

  • NE has started drilling at the Malampaya-Camago field using its Noble Viking drillship.
  • The contract includes three wells with an option for a fourth, starting with Bagong Pag-Asa-1.
  • The MP4 project aims to extend field life and reduce the Philippines' reliance on energy imports.

Noble Corporation plc (NE - Free Report) , a leading offshore drilling contractor, has begun its drilling campaign at the Malampaya-Camago field offshore the Philippines. In 2024, Noble’s drillship, the Noble Viking, secured a contract from Prime Energy to drill three wells at the Malampaya-Camago field. The contract includes an option to drill an additional well.

Bagong Pag-Asa Site Marks Operational Kickoff

The rig has arrived at the Bagong Pag-Asa drill site, which marks the commencement of drilling operations for the Malampaya Phase 4 (MP4) project. The MP4 project holds significant importance for the country’s energy sector, and the start of drilling operations at the field marks a new milestone in the Philippines’ efforts to strengthen its energy security. The Malampaya deepwater project commenced operations in 2001, and since then, it has played a critical role in the Philippine energy system. At its peak, this project supplied enough power to meet up to 40% of Luzon's energy demand.

Extending Field Life and Boosting Domestic Output

Phase 4 of the Malampaya project involves drilling three wells — Camago-3, Malampaya East-1 and Bagong Pag-Asa-1 — using the Noble Viking drillship. This should help extend the life of the gas field while raising energy production in the Philippines. The country also aims to reduce its dependence on energy imports.

Per the Philippine Department of Energy (DoE), the first gas from the project is expected by the fourth quarter of 2026. The DoE is focused on carrying out this project under the expected timelines and has reiterated its support for the same.  It will support the future stages of this project to build a reliable and sustainable energy future for the nation.

The Noble Viking drillship was built in 2013, and the rig can operate in depths of 12,000 feet. This drillship’s maximum drilling depth is 40,000 feet and can accommodate 230 people.

NE’s Zacks Rank & Key Picks

NE currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy sector are Flotek Industries Inc. (FTK - Free Report) , Subsea7 S.A. (SUBCY - Free Report) and Oceaneering International (OII - Free Report) . While both Flotek Industries and Subsea7 sport a Zacks Rank #1 (Strong Buy) at present, Oceaneering International carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Flotek Industries specializes in green chemistry, which provides innovative solutions aimed at reducing the environmental impact of the energy industry. Flotek develops specialty chemicals tailored for both domestic and international energy producers, as well as oilfield service companies. These chemicals not only help reduce the environmental impact of hydrocarbon production but also lower operational costs.

Subsea 7 helps build underwater oil and gas fields. It is a leading player in the global offshore energy industry, providing engineering, construction, and related services at offshore oil and gas fields. The long-term outlook for energy demand remains positive, and Subsea7’s focus on cost-efficient deepwater projects strengthens the position of its subsea business.

Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.

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