Donnabel Kuizon Cruz

The energy landscape in the Philippines is undergoing significant transformation, driven by a combination of local and global factors. 

As the country seeks to diversify its energy sources and reduce dependence on imported fuels, this evolution presents both opportunities and challenges.

Yet, local players like Prime Energy are emerging as vital contributors to this shift. 

“At the peak, we supplied 40% of the natural gas used by gas-fired power plants in Luzon,” says Donnabel “Donna” Kuizon Cruz, President and CEO of Prime Energy.

Donna brings over two decades of experience in the oil and gas industry to her role, and she is well placed to steer the company as it enters its new phase of gas exploration that they believe can help the country grow into a position to push for sustainability. 

The evolution of Prime Energy

The journey began when  a subsidiary of Shell, formerly known as Shell Philippines Exploration B.V., divested its shares to Prime Infrastructure Capital Inc. (Prime Infra) back in November 2022 

Prime Energy Resources Development B.V. (Prime Energy), was established as a subsidiary of Prime Infra, as a natural gas exploration and development company. 

This shift posed unique challenges, particularly in maintaining operational efficiency without the support systems previously provided by a global company. 

Leading the way

Donna began her career as a technologist in refining and gradually ascended through various roles, which equips her with a deep understanding of the industry. 

This enables her to make informed decisions at every level, something that has proved crucial as Prime Energy navigates its next strategic push and external challenges. 

“The only gas producer in the Philippines is us,” she states. “We were fortunate enough to have acquired this as part of the Shell group; it's one of the best in terms of operational excellence.”

Prime Energy operates a 504-kilometre gas subsea pipeline that strikes right in the middle of the nerve centre of gas-fired power in the Philippines. 

Malampaya supplies natural gas to four natural gas-fired power plants in Batangas City. 

“Our infrastructure is connected to this nerve centre and could also be the tie-in point for future discoveries of offshore gas in the Philippines,” Donna explains. 

Partners powering the push

Partnerships play a pivotal role in the success of Prime Energy’s indigenous gas exploration and development. 

A critical component of Prime Energy's strategy involves forging new strategic partnerships that enhance its operational capabilities. One notable collaboration is with SLB (formerly Schlumberger), which allows Prime Energy to leverage advanced technologies crucial for optimising exploration and production processes. This partnership has delivered subsea equipment for an offshore gas field, focusing on immediate areas.

OneSubsea, backed by SLB, will provide wellheads, Christmas trees (control equipment), and a subsea production system for Prime Energy's Malampaya Phase 4 project to drill and tie-in two new deepwater wells. “Exploration and development of a late-life gas field like Malampaya requires extraordinary feats of engineering, which we are committed to deliver safely,” says Donnabel.

Strategies for the future

Donnabel outlines three main areas of focus: stabilising operations, addressing declines in performance metrics, and preparing for expansion.

Improvements in production reliability have risen from 96% at year-end to 98% currently—a significant achievement reflecting enhanced efficiency. 

Equally, the team now includes a subsurface team. “We have a team of geologists looking at other sources for indigenous gas and oil both in the country and outside of the Philippines,” Donna says. “We also have a dedicated wells team, and subsea engineering team to execute our projects. Finally, we are currently building up a development and commercial team that is looking at potential acquisitions and other new businesses, outside of our conventional oil and gas upstream work.”

Donna emphasises strategic drilling campaigns aimed at discovering new gas reserves: "To extend our life, we have to drill for new gas," she states.

As Prime Energy solidifies its position in the Philippine energy landscape, its goals revolve around extending existing assets' life while exploring new revenue opportunities. 

By leveraging local operational capabilities while embracing new partnerships and strategies, Prime Energy aims not only to survive but thrive within an evolving energy landscape.

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