Galoc operator to resume drilling

MANILA, Philippines - Galoc Production Co. (GPC), the operator of what is believed to be the next biggest oil-producing field in the Philippines, plans to resume oil drilling activities in the Northwest Palawan field next week.

In a disclosure to the Philippine Stock Exchange, GPC consortium member Philodrill Corp. said they expect to complete the installation and reconnection of their drilling equipment soon.

It said the favorable weather condition lately had allowed them to carry out their operations.

The Galoc field started producing oil at a range 12,000 to 15,000 barrels per day in October last year.

Since then, the consortium  produced more than 700,000 barrels of oil which was sold in the Philippines and abroad for refining.

The Galoc field is located in Service Contract 14C, approximately 65 kilometers northwest of Palawan. It is estimated to contain 10 million barrels of oil reserves.

GPC is jointly owned by a subsidiary of Swiss energy firm Vitol Group and Australia’s Otto Energy Ltd. GPC’s partners in SC 14 covering are Nido Petroleum, Oriental Petroleum and Minerals Corp., The Philodrill Corp., Forum Energy Philippines Corp., Alcorn Gold Resources Corp. and PetroEnergy Resources Corp.

In December 2008, the group decided to temporarily stop its drilling operations due to poor weather conditions.

“GPC is pleased to report progress towards re-commencement of production from the Galoc field the diver re-instatement of the mooring and riser system has been completed and the umbilical plus subsea equipment integrity testing successfully,” it said.