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The Galoc Production Co. (GPC), operator of the Galoc
field, announced the completion of repair works on the latter’s
facilities that were damaged by recent typhoons, which would pave
the way for the long-delayed production of first oil this month.
In a statement, GPC said that the
“associated work program” for the Galoc field is now under way
after the successful repair works on its facilities, which were
damaged by Typhoon Frank in late June.
“Subject to suitable weather
conditions, first oil is expected mid-September,” the statement
read.
The Galoc field is run by a
consortium led by GPC, which holds a 32-percent interest, and its
partner Australian firm Nido Petroleum Ltd., which has a
22.28-percent share. Other partners include Philodrill Corp., which
has a 7.02-percent stake, and Oriental Petroleum and Minerals Corp.
and Linapacan Oil Gas and Power Corp., both of which hold a
7.58-percent interest in the consortium each. Also part of the
consortium are Forum Energy Philippines Corp., with 2.27-percent
share, while Alcorn Gold Resources Corp. and PetroEnergy Resources
Corp. hold 1.53- and 1.03-percent interest, respectively, in the oil
field.
The said field located in the
offshore Northwest Palawan basin is the first oil development
project to be undertaken in the country in over a decade and is
projected to contain proven reserves of up to 14 million to 16
million barrels of the commodity.
The field was originally
scheduled for first oil production in April but mechanical problems
coupled with weather disturbances subsequently pushed this to
September.
The contractual and operational
delays have resulted to an increase in the Galoc’s project cost
from $86 million to over $120 million.
The operator of the
consortium’s contracted floating production, storage and
offloading vessel the Rubicon Intrepid is expected to shoulder much
of the costs associated with the repair works.
--Euan Paulo C. Añonuevo
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