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THE CONSORTIUM operating service contract (SC) 14 -- Galoc oil field -- in waters northwest of Palawan has started fresh drilling aimed at doubling daily production at the site, according to a regulatory filing yesterday.

An oil and gas rig is shown in operation in the Galoc oil field in this file photo dated June 23, 2008.
In a report to the Australian Securities Exchange, operator Otto Energy Ltd. said that drilling of two production wells in the area started on Tuesday.

SECOND PHASE
The Australian firm said that at 1 p.m. on June 4, “the Ocean Patriot semi-submersible drilling rig commenced drilling the Galoc-5H and 6H development wells.”

“Drilling is expected to take approximately 115 days, including the flowing of the wells for clean-up,” it added.

Otto said it will provide weekly updates on drilling progress.

The drilling activity in the oil field is part of the second phase of development of Galoc oil field.

In September last year, the SC 14 joint venture partners approved the development’s second phase, which involves drilling of two subsea wells.

MORE ON THE WAY
The two wells, which are expected to start yielding oil in the fourth quarter of this year, are expected to more than double production at the field to at least 12,000 barrels of per day (bpd) from the current average of 4,750 bpd.

Otto reported in December last year that the joint venture would be spending $188 million for the second phase of development.

Otto, through Galoc Production Co. W.L.L., holds 33% stake in SC 14.

Other stakeholders are Galoc Production Company No. 2 Pte. Ltd. with 26.84473% Nido Petroleum Ltd. with 22.87952%; Oriental Petroleum & Mineral Corp. and Linapacan Oil & Gas Power Corp. with 7.78505%; The Philodrill Corp. with 7.21495% and Forum Energy Philippines Corp. with 2.27575%.

Besides SC 14, Otto also holds interests in three exploration projects in the Philippines, namely: SC 55 in waters west of Palawan where it has a 33.18% stake; SC 51 in waters northwest of Leyte, 80%; and SC 69 in Camotes Sea (located between Eastern and Central Visayas), 79%. -- Claire-Ann Marie C. Feliciano

Reference:

Feliciano, C. A. M. C. (2013 June 6). Galoc field production set to increase. Business World. Retrieved from http://www.bworldonline.com/content.php?section=Corporate&title=Galoc-field-production-set-to-increase&id=71398

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