Otto Energy strikes oil off Palawan
The country’s only producing oil project, the Galoc field off northwest Palawan, seems set for phase II production later this year as operator Otto Energy reportedly struck oil while drilling one of two new wells at the site.
“Logs obtained while drilling have confirmed that the well has penetrated the oil bearing Galoc reservoir sandstones in line with the pre-drill prognosis,” Otto said in a project update published on its website.
The update referred to drilling for the Galoc-6H well. The other well being developed is referred to as Galoc-5H.
“It is already known that there is oil because Galoc is productive with an existing well, and the new well being drilled will simply enhance capacity. This latest development indicates the second phase is on track for first oil later this year,” Energy Undersecretary Ramon V. Oca said in a phone interview.
Galoc Phase II involves the drilling of two new wells to confirm if other prospects in the project area contain enough oil and gas to double the field’s roughly 6,000 barrels-a-day output. The two wells under Phase II are expected to start producing oil by the fourth quarter this year.
Revenue from the Galoc field off northwest Palawan more than doubled in the April-to-June quarter from the comparable period last year. Production work went “without significant interruption” since the facility upgrade in early 2012, according to operator Otto Energy.
In a report, Otto said oil sales reached $23.615 million in the quarter ending on June 30—up 89.25 percent from the previous quarter. That growth rate was dwarfed by the nearly 115 percent surge from the second quarter of 2012.
Galoc oil field production recommenced on April 2, 2012, following a major facility upgrade. By the end of June that year, Otto had reported $10.939 million in oil sales.
