NEWS / UPDATES
as of 31 August 2018
- Galoc Field production reached 20 MM Bbls of production in January 2017 and is now nearing the 21 M barrels benchmark
- Tamarind Resources took over the interest and operatorship of the SC 14C1 (Galoc) from Nido/Bangchak on 14 August 2018
- Entry of a potential farminee in the amended Service Contract 6B (Bonita block) steadily firming up
- Inclusion of Cadlao Field into the amended Service Contract 6B – Bonita Block approved by the Department of Energy
The Philodrill Corporation is pleased to announce that crude oil production from the four Galoc wells continues steadily, currently averaging 3,200 barrels of oil per day (bopd). The field is nearing its 21million barrels production benchmark, the most by a Philippine oil field. For the first eight months of the year, the Galoc field produced about 780,000 barrels consistent with the full-year production forecast of 1.17 million barrels for 2018. To date, a total of sixty-one (61) shipments have been completed and sold mostly to traders and refineries in Singapore, Thailand, Japan, China and South Korea at stable competitive crude prices. Another shipment is calendared before the year-end.
In July this year, Tamarind Resources Limited successfully concluded its purchase of erstwhile owner Bangchak‘s entire interests in the Galoc Field. Management of the Galoc field is now under the careful watch of Tamarind Galoc Pte Ltd whose acquired subsidiary Galoc Production Company is being retained as operator.
Galoc Production Area Floating Production and Storage Vessel
Nido, Matinloc, and North Matinloc Production Area
Philodrill continues to operate oil production operations from two other smaller producing fields. The Nido and Matinloc Fields have produced a combined volume of 72,800 barrels for the first 8 months of the year, as against the 111,700 barrels forecast full-year production for 2018. Oil production at the North Matinloc, however, temporarily ceased in April 2017. Pilipinas Shell continues to be the exclusive buyer of the Nido-Matinloc crude mix under a renewed contract signed in early August this year.
Other Petroleum Updates Projects
The Department of Energy finally approved on June 5, 2018 the First Amendment to Service Contract 6B with the Cadlao Field appended to it. The amendment is a condition precedent of the farm-in of a Europe-based company which is currently being firmed up. The farm-in is expected to result into further exploration work on this very promising area and the aggressive and immediate re-development of the Cadlao field to achieve “First Oil” by end-2019. The Cadlao field last produced in November 1991 at a rate of about 900 bopd, but with a good potential to flow at higher rates.
In anticipation of the farm-in, Philodrill has consolidated its position as majority partner in SC 6B, taking the entire interest of subsidiary Philodrill Power Corporation as well as its proportionate share of Trans-Asia Petroleum’s relinquished interests in the block.
The joint venture is also looking at the potential of the East Cadlao structure which can provide upside potential to the planned re-development of Cadlao.
In Service Contract 6A – Octon Block, Philodrill continues with remapping of earlier identified prospects using PSDM seismic data combined with the results of the Quantitative Interpretation works. It is expected that upon completion of these works, Philodrill will be able to propose potential well location(s) that will test the hydrocarbon potential of the Malajon-Salvacion-Saddle Rock anticlinorium.
The results of the initial volumetric assessment of the West Linapacan A Field in Service Contract 14 C-2 last year indicated lower than expected reserves. Moving forward, the joint venture continues to conduct other technical studies to identify and assess remaining, viable options to re-develop the West Linapacan Field.
In the Mindoro Block, operator Mindoro-Palawan Oil & Gas, Inc (MPOGI) has yet to provide the JV partners with a concrete plan in carrying out the drilling of its Progreso-2 commitment well. There are some groups that have indicated interests on the block and offering possible a drill-for-equity arrangement.
Lastly, block operator PXP Energy is about to complete their ongoing gravity data interpretation and modeling, the results of which will be integrated with the ongoing interpretation of the broadband seismic data volume acquired in 2016. Field mapping and sampling at the Calamian Islands Group was recently completed to complement the on-going geophysical interpretation works. Philodrill is contributing to the exploration efforts by doing a re-evaluation of the Linapacan A and B discoveries while partner PNOC-Exploration Corporation is doing the scoping Engineering and Market Study on these discoveries.
Decommissioning Activities and Initiatives
The company recognizes that production from its operated wells in Service Contract 14 can no longer be sustained as most are nearing their economic life. To comply with the requirements of the service contract, the company is now programming the gradual plug and abandonment of the non producing wells in the SC. In line with this program, the joint venture has completed P&A operations for the Pandan, Libro and Tara South wells. That initiative is now being continued as the Company and its JV partners are also looking into the eventual P&A of the remaining production wells in the West Linapacan, Nido, Matinloc, and North Matinloc fields. Starting with the West Linapacan, Philodrill has engaged CWT Consultancy Limited, a P&A specialist firm with good experience in the Southeast Asia region, to do a scoping study with focus on the requirements for the eventual P&A of the old West Linapacan wells. Similar study for the Nido and Matinloc fields is planned to immediately follow.