Kuwait firm joins Galoc oil project

Kuwait Foreign Petroleum Exploration Co. (Kufpec), a subsidiary of Kuwait’s national oil company, has acquired a 26.8-percent working interest in the joint venture operating the Galoc oil field in offshore Palawan.

In a regulatory filing, joint venture member Otto Energy Ltd. said Kufpec acquired Risco Energy Pte. Ltd., the parent of Galoc Production Co. No. 2 Pte. Ltd., which previously held the 26.8-percent interest in the Service Contract 14C license.

The rest of the stakeholders retained their respective holdings in the SC 14C license. Otto Energy, which owns the operator, Galoc Production Co. WLL, retained its 33-percent interest; Nido Production (Galoc) Pty Ltd. holds a 22.88-percent interest; Oriental Petroleum and Minerals Corp. and Linapacan Oil Gas and Power Corp. jointly own 7.78 percent; The Philodrill Corp., 7.22 percent, and Forum Energy Philippines Corp., 2.28 percent.

According to Otto Energy, Kufpec joined the Galoc joint venture during a critical period of investment that would extend production from Galoc beyond 2020.

“The entry of a high-quality partner such as Kufpec into the Galoc joint venture is a testimony to the strength of the Galoc project overall. Kufpec brings a wealth of technical and financial experience to the project at an important stage in the long-term development of the field. We look forward to working with them as we progress Phase II and build for the future of Galoc,” said Otto Energy chief executive officer Gregor McNab.

Last year, the Galoc joint-venture partners      approved the Galoc Phase II development, which will entail the drilling of two subsea wells in a bid to increase oil production at the field to more than 12,000 barrels of oil per day from the current average of 4,750 bopd.

The drilling is targeted to start by June this year while the first oil is expected within the fourth quarter of 2013.

During the first quarter this year, total production from the Galoc oil field stood at 434,801 barrels at a daily average of 4,831 barrels.

The Galoc joint venture was able to ship its 30th cargo of 365,621 barrels last March to a South Korean refinery. The shipment was priced at $111.953 a barrel. Another cargo has been sold and scheduled for delivery late this month.