InterAksyon.com means BUSINESS
MANILA - The Department of Energy expects two petroleum fields in offshore Palawan to boost the country's oil production.
Undesecretary Jose M. Layug, Jr. said two projects in the upstream petroleum industry will increase the country's 6,000 barrels per day output of oil, which is well below the total domestic demand of 300,000 barrels.
The first is the commitment by the Service Contract 6 joint venture led by Australian firm Blade Petroleum Ltd. to start drilling and production at the Cadlao field next year.
"We have received already a report from Cadlao that they are pushing through though they asked for a one-year extension because now they have to engage vessels and oil rigs for the project," Layug said.
Located in offshore Northwest Palawan, the 3,500-hectare contract area had produced about 11 million barrels of oil from 1981 to 1991 when production was halted due to high costs and low oil prices.
The SC 6 joint venture took over the right to explore and develop the Cadlao field after buying out the share of local companies in the contract.
Layug said Cadlao - a marginal field with limited reserves - has already been proven to contain upwards of two million barrels oil.
Besides Cadlao, the DOE also expects the second development phase of the Galoc oil field in offshore Northwest Palawan to jack up oil production.
Layug said the Galoc consortium, which holds SC 14C, will release its final investment decision this year. Under its field development plan, the second phase would start next year. "They're looking at that already. Last time I spoke with them they're already studying," Layug said.
The SC 14C consortium is led by Galoc Production Co., a wholly-owned unit of Australian firm Otto Energy Ltd.
Since start of production in October 2008, the Galoc field has churned out 8.46 million barrels of crude as of the first half of the year.
The second phase of the Galoc project involves drilling additional wells in the block to boost production.
The Galoc field accounts for nearly the entire 6,000 barrels per day production of the Philippines as other oil wells in the country are regularly shutdown whenever market prices or field pressure is low.
InterAksyon.com means BUSINESS
BUSINESS NEWS
