Galoc oil flow to double countrys oil production
13-OCT-2008 Intellasia | yehey.com
Oct 13, 2008 - 7:00:00 AM
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Malacaang yesterday announced that the Galoc field in northwest Palawan has begun commercial production of oil that is expected to double indigenous production and cover 6% of the countrys total demand.
Executive Secretary Eduardo Ermita said the yield from the Galoc oil field, called Palawan Light, would mean savings of US$1.4 billion in foreign exchange for the wells entire lifetime given the expected yield of 10 million barrels.
Ermita said the extracted oil had been described as light, medium crude oil, with a potential high yield of products such as gasoline.
The fresh oil was put on board a Philippine ship at 11:20 a.m. and was brought to local refineries.
The volume of extract confirms early production targets of 17,000 to 20,000 barrels of oil per day in the first 90 days of operation. This will account for about 6% of daily local demand of 300,000 barrels per day, Ermita said.
The President is optimistic that this new development will... reduce the countrys annual oil importation of US$6 billion, and in turn will also contain the increasing cost of food and other commodities.
Galoc is the first oil field development in the country since 1992.
Earlier, Energy Secretary Angelo Reyes and Jeff Davison, chief operating officer of Galoc Production Co., announced that the first well was opened at 10:45 a.m.
We are right on track in utilising our indigenous resources, Reyes said. Opening our country to more investment opportunities such as this one will eventually benefit everyone.
It is a momentous day for us all, Davison said, noting that the development of any offshore field was challenging, particularly a small field such as Galoc in a remote location.
The GPC team has invested three-years of committed and concerted effort to bring the Galoc field into production, he said, while crediting the government for promoting oil and gas exploration.
Nido Petroleum, a part of the Galoc consortium, said the oil field would have a huge impact on the Philippines as it more than doubled the indigenous oil production in the country.
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