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    Galoc flows 11,350 barrels
    By Alena Mae S. Flores

    Galoc Production Co. said yesterday that oil flow from the Galoc field off northwest Palawan rose to a combined 11,350 barrels per day after the completion of development work on two wells.

    Galoc Production, operator of the oil field discovered in 1981, said “further development is dependent on results of reservoir performance during the extended production test.”

    “First oil is anticipated late April at which stage the extended production testing will commence,” the company said in an e-mail to Standard Today.

    Galoc Production, which holds 58.29 percent of Service Contract 14 where the Galoc oil field sits, is owned by Vitol GPC Investments SA of Switzerland (69 percent) and Perth-based Otto Energy Ltd. (31 percent).

    Galoc Production, in a statement disclosed by minority partner Philodrill Corp. to the stock exchange, said it completed G4 and G3 wells, where the oil flow confirmed both the well integrity and the ability to produce oil.

    It said oil flow from the G4 well stabilized at 6,150 barrels of oil per day while that of G3 yielded 5,200 barrels per day. The flow rate from the G3 well was first announced last week.

    Galoc Production, meanwhile, said oil from Galoc would be available for domestic consumption.

    “The Galoc joint venture partners are promoting domestic sales, but this will be dependent on domestic requirements for Galoc-type crude oil,” the company said in the e-mail.

    It estimated commercial development of the oil field at around $104 million, including two horizontal wells.

    “This flow data [G4] is fully consistent with anticipated well performance associated with the operator’s mean reserves estimate, undertaken in 2006, of approximately 10 million barrels, confirmation of this will be the subject of full well test scheduled for late April after first oil,” the company said.

    The Galoc field is located in SC 14 C (Galoc sub-block) in 290 meters of water and approximately 65 kilometers northwest of Palawan.

    The Galoc field was discovered in 1981 by Philippine Cities Service and yielded oil during production tests in the late 1980’s. It was never commercially developed.

    Nido Petroleum holds 22.28 percent while Philodrill owns 7.02 percent of the service contract. Other members of the Galoc development and their participating interest are Oriental Petroleum & Minerals Corp. and Linapacan Oil Gas & Power Corp., 7.58 percent each; Forum Energy Philippines Corp., 2.27 percent; Alcorn Gold Resources Corp., 1.53 percent; and PetroEnergy Resources Corp., 1.03 percent.

    The Malampaya project, operated by Shell Philippines Exploration B.V., is currently the country’s biggest oil and gas reservoir.

    Petroleum Association of the Philippines president Eduardo Hernandez said exploration in the country boomed in the 70’s when world oil prices soared.

    “The Philippines opened its gates to foreign firms and soon after, oil of commercial quantity was discovered by Philippine Cities Services in the Nido followed by Amoco in Cadlao, fields off Palawan,” he said.

    “At one point, the country produced as much as 20 percent of its fuel requirement. Then came the giant elephant gas field called the Malampaya gas field under the consortium of Shell, Chevron and PNOC-Exploration Corp.,” he said.

    “The country needs around 325,000 barrels of oil per day of which 800 is produced locally. This is on top of the 10 million cubic meters per day or an equivalent of 60,000 BOPD from the Malampaya gas field,” he added.
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