Production at the Galoc oil field in Palawan, Philippines will resume in mid-February, two weeks later than originally targeted, with the operators still repairing the system following bad weather late last year.
Nido Petroleum Ltd. has told the Australian Stock Exchange it had been advised by the Galoc oilfield operator, Galoc Production Co. WLL (GPC), that repairs to the oil recovery system were still ongoing.
The oil explorer had targeted to resume production at the end of the month. Nido Petroleum Deputy Managing Director Joanne Williams said the operators were improving the setup to reduce the frequency of disconnection of its oil recovery system.
The shutdown, the company said, would delay the delivery of its fourth shipment to Japan, previously committed for delivery in early February.
Galoc’s first cargo was bought by Petron Corp. while two other cargoes were shipped to Thailand and South Korea.
The Galoc field started commercial production on Oct. 9 and was producing 15,000 to 20,000 barrels daily. The figure was equivalent to about 6% of the country’s total daily demand of 300,000 barrels.
Nido Petroleum owns 22.28% of the oilfield, while fellow Australian firm Otto Energy Ltd. holds an 18.3% indirect interest. The rest is owned by Filipino oil explorers.
Otto Energy owns 31% of Galoc Production, the operator of the project. The rest belongs to Vitol GPC Investments SA.
Crude oil from Galoc is expected to generate foreign exchange savings for the country worth over a billion dollars during its lifetime.
Source: Business World, Manila
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