Galoc resumes oil production in Palawan; eyes 300,000 barrels delivery

November 10, 2009 9:35 am 

By Marie S. Neri

MANILA, Nov. 10 —- Galoc Production Co. (GPC) reported that oil production has resumed in the Galoc field in Palawan.

According to Nido Petroleum Ltd., one of the consortium forming the GPC said WLL completed the repairs of the Floating Production Storage and Offloading (FPSO) facility allowing them to transfer the Palawan light crude from the FPSO to the tanker that would deliver oil to buyers.

“The planned crude offtake is underway, freeing up storage capacity in the FPSO and enabling normal production to restart,” Nido said.

Nido controls 22.28-percent stake in GPC.

In a separate statement, GPC said that “offloading is ongoing as a routine operation with crude oil being transferred from the FPSO to the off-take tanker.”

With the repairs completed, GPC said it can now deliver Cargo No. 9 to its buyers which is equivalent to 300,000 barrels of the Palawan light crude.

GPC is also preparing to deliver another 300,000 barrels of Palawan light crude, possibly to a buyer from Thailand.

Last month, GPC suspended oil production at the Galoc field because the FPSO was “at storage capacity and has been unable to off-load due to an issue with the export hose.”

With an estimated reserves of approximately 10 million barrels, the Galoc Field was discovered in 1981 with further appraisal undertaken in 1988.

The field was not developed at that time due to the combination of risks associated with the reservoir and low oil price.

The current development was initiated in mid 2005 when Galoc Production Company WLL (GPC) farmed in to the existing Service Contract SC14-C Galoc Sub-Block. Since that time GPC, which is jointly owned by a subsidiary of the Vitol Group and Otto Energy Limited, has worked in conjunction with its joint venture partners; Nido Petroleum Pty Ltd, Oriental Petroleum and Minerals Corporation, The Philodrill Corporation, Forum Energy Philippines Corporation, Alcorn Gold Resources Corporation and PetroEnergy Resources Corporation to rapidly appraise and bring the Galoc Field into production. (PNA)

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