Galoc output breaks 9M barrel mark

Production at the Galoc oil field off Palawan has exceeded nine million barrels as of the end of June, depleting more than 62 percent of the 14.44 million barrels in its projected reserves since it began production in October 2008.

In a quarterly report, Australian firm Otto Energy Ltd. said its wholly owned subsidiary, Galoc Production Co. WLL (GPC), was able to produce only 534,405 barrels of oil in the first half the year, following months of shutdown.

GPC shut down its operations at the Palawan oil field late last year for the upgrading of the Floating Production Storage and Offloading vessel (FPSO). Production resumed in April.

In the second quarter, the joint venture operating the Galoc oil field was able to sell two cargoes, according to Otto Energy.

Cargo 26, containing 325,546 barrels of oil, was sold and delivered on May 31 to a South Korean refinery at $113 per barrel. Cargo 27, which was sold during the quarter, will be delivered in August this year to a buyer in South Korea.

Otto Energy further disclosed that a two-well development is being planned for 2013, as part of the Galoc joint venture’s proposed Phase II program for the field.

The Galoc joint venture, the report stated, had already pre-invested in the required infrastructure, including wellheads, flowlines and umbilical lines to ensure drilling in 2013. The final investment decision is expected to be announced within the third quarter this year.

Under the initial Galoc Phase II development options, GPC is targeting to increase reserves by 5 million barrels of oil by drilling new wells, which are estimated to yield about 4,000 barrels of oil per day. These wells may be drilled in the northern portion of the Galoc structure to boost production and access undeveloped reserves.