Otto Energy Ltd., Perth, approved a $188 million second phase development of Galoc oil field on SC 14 offshore the Philippines.
Second phase production would start in the second half of 2013 and hike output to more than 12,000 b/d from the present 5,600 b/d from two existing wells. The field is expected to remain on production a further 5 years.
Otto Energy became operator in September 2011 and recommissioned the field in April 2012. Galoc’s remaining reserves are 10.2 million bbl proved and 16 million bbl proved plus probable, attributable to higher well recoveries based on pressure data analysis and booking of reserves from previously reported contingent resources.
Future reserve and resource increases are likely to come from incorporation of the results of the recent 3D seismic, successful appraisal-exploratory activities, further infill drilling, facilities optimization, and tertiary recovery, Otto Energy said.
Otto Energy has secured the Ocean Patriot semisubmersible to deliver two development wells with 2,000-m horizontal sections to be tied back to the Rubicon Intrepid FPSO. A second production riser and control umbilical will be installed which will further improve system reliability.
The drilling contract contains an option for exploratory drilling in the northern part of Galoc.
Cash flow from Galoc will allow Otto to reinvest in a balanced exploration portfolio that is on track to deliver exploratory drilling programs in 2013 in the Palawan and Visayan basins. These include northern Galoc field, the Duhat oil prospect in SC 51 North onshore Leyte to be drilled in 2013, and the Cinco prospect offshore Palawan.
Galoc participating interests are the Galoc Production Co. subsidiary of Otto Energy 33%, Galoc Production Co. Pte. Ltd. 26.84473%, Nido Production (Galoc) Pty. Ltd./Nido Petroleum Philippines Pty. Ltd. 22.87952%, Oriental Petroleum & Minerals Corp. and Linapacan Oil Gas & Power Corp. 7.78505%, Philodrill Corp. 7.21495%, and Forum Energy Philippines Corp. 2.27575%.
Galoc field is in the SC14-C Galoc subblock in 290 m of water 65 km northwest of Palawan Island and 350 km south of Manila. The field has produced 9 million bbl of oil to July 1, 2012.