RP's Galoc oil field to resume production


Posted at Feb 20 2009 03:07 PM | Updated as of Feb 20 2009 11:07 PM

Production at the Philippines' new Galoc oil field is expected to resume next week following a two-month shutdown when repairs were completed, the operator said on Friday.

The 15,000-20,000 barrels per day (bpd) field, off the southwestern Philippines, which came on stream in October, has been plagued with production problems linked to bad weather.

It was shut down in mid-December for an inspection barely two months after starting production.

"At this time, weather remains favorable and completion of the reinstatement activities and re-commencement of production is anticipated next week," field operator Galoc Production Company (GPC) said in a statement.

GPC said the installation of the mooring system enhancement, including the additional mooring lines to be connected to the Floating and Production Storage and Offloading facility (FPSO) stern was progressing with the first system installed and hook-up to the FPSO ongoing.

Galoc was the first major field to come onstream in the underexplored country since the 1990s.

But repeated delays -- the field was initially due to start in the first quarter of 2008 -- led to equity producers missing the oil price rally last year.

The operator of the filed is GPC, in which European trader Vitol has a 68.6 percent stake and Australian oil firm Otto Energy a 31.4 percent interest.

It owns 58.29 percent of the project. The remaining 41.71 percent is split between Nido Petroleum, with 22.28 percent, and several Philippine partners.