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reserves

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    Galoc oil reserves higher—Nido Petroleum
    By Alena Mae S. Flores

    Nido Petroleum Ltd. of Australia said the Galoc oil field off northwest Palawan could contain around 23 million barrels, significantly higher than the 10-million-barrel estimate of operator Galoc Production Co.

    J.V. Emmanuel de Dios, president of Nido Petroleum, told the Kapihan Forum at the Sulo Hotel in Quezon City Saturday that his company was excited over the scheduled commercial production of Galoc next month, although it was a far cry from the 535 million barrels of oil equivalent found in the Malampaya field.

    Nido Petroleum owns a 22.2 percent stake in the Galoc field, which lies on Service Contract 14C off northwest Palawan.

    “We estimated that by April, we will start producing oil at an average of 17,500 barrels per day. We are excited because this is the first time since Malampaya started producing in 2001 that we will have oil production again,” De Dios said.

    “With Galoc coming in, that would probably double our current oil production,” he said, adding that Galoc production would supply about 10 percent of the country’s annual oil consumption. The Galoc field is located in 290 meters of water.

    “Commercial production depends on the price of oil but for us, we’re go at 20 million barrels,” De Dios said.

    Nido has commissioned Gaffney, Cline and Associates of Singapore to undertake a revision of the Galoc reserves estimate. GCA will also determine the lifespan of the Galoc oil field.

    Once the Galoc field starts oil production, De Dios said Galoc Production (composed of Vitol GPC Investments SA with a 69 percent share and Otto Energy Ltd. with 31 percent of the service contract), will market the crude. The government is entitled to a 60 percent share from the Galoc production once the cost-recovery period is completed.

    Oil and gas exploration companies are allowed to recover exploration costs for a number of years.
 
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