MANILA, Philippines - The Galoc oil field is set to deliver more than 12,000 barrels of oil a day by the fourth quarter of this year. This will be 150% higher than its current production of 4,750 barrels per day.
Australia's Otto Energy Ltd. said first oil from the Galoc Phase II project in northwest Palawan is scheduled in the fourth quarter. It was earlier scheduled in the first half of the year.
The Galoc consortium made the final investment decision for phase 2 of development last September. Otto contributed $62 million for the development costs of Galoc phase 2.
Under the Galoc phase 2, the project involves drilling and completion of two sub-sea wells tied into the existing infrastructure.
Otto said drilling rig "Ocean Patriot" will undertake the development drilling program, which will start in June.
"Galoc continues to be a key asset for Otto, delivering valuable cashflow to fund future growth opportunities. I look forward to the delivery of continued reliable production from existing operations and increased production volume from Galoc Phase II in the first half 2013," Otto Chief Executive Officer Gregor McNab earlier said.
Otto holds a 33% direct ownership in the Galoc project through Galoc Production Co.
Galoc Production, holds a total of 59.8 percent of SC 14-C while Nido Production Ltd. holds 22.88 percent, Oriental Petroleum & Minerals Corporation and Linapacan Oil Gas & Power Corporation, 7.785 percent; The Philodrill Corp., 7.214 percent and Forum Energy Philippines, 2.275 percent.