After setbacks, Galoc is ready to produce oil
By Abigail L. Ho
Philippine Daily Inquirer
First Posted 03:13:00 07/25/2008
MANILA, Philippines—Galoc Production Co., operator of Service Contract 14C, which covers the Galoc oil field off the southwestern island of Palawan, said it had started restoring equipment that was damaged during the onslaught of Typhoon “Frank” last month, paving the way for drawing first oil in early August.
The company said the replacement riser sections for the mooring and riser system had arrived in the Philippines and replacement and reconnection operations would be undertaken soon.
It said the floating production storage and offloading (FPSO) facility had been disconnected from the mooring and riser system to ensure the safety of personnel on the vessel and to protect the production systems from damage during the typhoon.
It said that after the typhoon subsided it was discovered that the retrieval line linked to the FPSO was damaged irreparably and a replacement had to be sent over from Singapore.
“Replacement riser sections have been mobilized from Singapore by our FPSO contractor and have arrived in the field on board a support vessel for the replacement operation,” Galoc said in a statement. “The mooring and riser system is being recovered and surface inspection and pressure testing of the umbilical will be carried out.”
It also said that after the riser replacement and reconnection operations, “an additional vessel equipped with a work-class (remote-operated vehicle) spread would be mobilized to assist its FPSO contractor in completing these activities.”
Galoc said the ongoing inspection, reinstatement and reconnection activities involved “several delicate, interrelated operations.”
The result of these activities will determine when oil will be drawn from the field, with the most likely scenario being early August, it said.
Independent appraiser Gaffney, Cline and Associates has estimated the production rate at the Galoc field to reach as high as 23,000 barrels a day, on average, in the first year of production.
Galoc owns 58.29 percent of SC 14C. Nido Petroleum Ltd. owns 22.28 percent and Otto Energy Ltd. holds 18.28 percent.With editing by INQUIRER.net
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