Philippines' offshore oil field starts work
11-OCT-2008 Intellasia | AP
Oct 11, 2008 - 7:00:00 AM
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The Philippines announced Thursday that it had begun pumping crude oil from its first oil field development in 16 years-a relief to the country amid ongoing global financial woes.
Officials estimate that the Galoc oil field, near Palawan island about 220 miles (350 kilometres) southwest of Manila, will eventually be able to pump about 20,000 barrels daily, or about 6% of national demand.
The volume of extract confirmed early production targets of 17,000 to 20,000 barrels of oil per day in the first 90 days of operation, said Executive Secretary Eduardo Ermita, the Cabinet's most senior member.
He said initial exploration results showed that the Galoc field has reserves of 10 million to 20 million barrels, subject to further studies.
President Gloria Macapagal Arroyo is optimistic that the newly found oil will help reduce the Philippines' annual oil importation of US$6 billion, Ermita said.
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A consortium of foreign and Philippine companies, called Galoc Production Co., is a majority shareholder in the oil field. Otto Energy Limited of Perth, Australia, an international exploration and production company, has a 31.28% stake in the consortium.
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