The Department of Energy has received the final investment decision from Galoc Production Company for the second phase development of the Galoc oil field in northwest Palawan.
“They have submitted plans for phase 2 for approval by DOE,” said Energy Assistant Secretary Ramon Oca adding that the submission included a detailed work programme including project cost.
Energy Undersecretary Jay Layug earlier said Galoc Production, operator of the Galoc oil field in northwest Palawan, is committed to undertake the second phase of its work programme to bring more oil to production.
Galoc Production, operator of the Galoc oil field, holds a total of 59.8 percent of Service contract 14-C while Nido Production Ltd holds 22.88 percent, Oriental Petroleum & Minerals Corporation and Linapacan Oil Gas & Power Corporation, 7.79 percent; The Philodrill Corporation, 7.21 percent and Forum Energy Philippines, 2.28 percent.
“They are committed to us to do Phase 2… Yes, they are doing phase 2. Phase 2 has always been part of their field development plan,” Layug said.
The second phase of the Galoc field development involves the drilling of one to three additional wells targeting three million to 10 million barrels of additional reserves.
“Phase 2 drilling is to produce more. They are very careful, you have to be careful how you extract because water might come in,” Layug said.
The Galoc consortium had earlier reported proven and probable reserves at a high of 19.75 million barrels while production has reached nine million barrels. The Galoc field currently produces around 6,000 barrels of oil per day.