NEWS / UPDATES
as of 30 March 2018
Galoc Field production in 2017 totaled 1.46 MM barrels which was consistent with the full-year forecast of 1.5 MM barrels. Despite the unstable crude prices, production continues averaging 3,500 barrels of oil per day. To date, the field had completed fifty-nine (59) shipments. Repeat buyers SK Energy and Thai Oil were the buyers last year.
After an extensive review of the results from the drilling campaign in April-May 2017 and subsequent ensuing studies on the potential tie-back development scenarios for the mid-Galoc wells, the JV in consideration of the prevailing low crude prices decided to temporarily suspend all activities related to a possible Phase III development and concentrate its efforts in optimizing oil production at the Galoc Field from the current four production wells in order to sustain profitability and prolong the field’s economic life.
Galoc Production Area Floating Production and Storage Vessel
Nido, Matinloc, and North Matinloc Production Area
Meanwhile, Philodrill continues to have production from three smaller producing fields. Last year, the Nido, Matinloc and North Matinloc Fields produced a combined volume of about 125,760 barrels, as against the 135,500 barrels full-year production for 2016. Pilipinas Shell continues to be the exclusive buyer of the crude mix.
Other Petroleum UpdatesProjects
The Department of Energy finally approved in early March the long-standing Joint Venture request for the reconfiguration of the Bonita Block to include the Cadlao oilfield, subject to the execution of an Amendment to Service Contract 6B. That amendment is being finalized by the DOE and Philodrill. The Bonita Consortium believes that of the three identified structures of interest within the block, the East Cadlao structure can be the economically most feasible and only if tied with the re-development of Cadlao. A Europe-based potential farminee has proposed to fund the redevelopment of the field, putting-up the most economic facilities and achieving “First Oil” by end-2019.
In Service Contract 6A – Octon Block, Philodrill has began to remap the previously identified prospects using PSDM seismic data combined with the results of the Quantitative Interpretation works that were completed in 2017 and early 2018 respectively. The results from these activities will serve as basis to conduct scoping project activities to assess viability of pursuing drilling and development of these prospects.
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, Philodrill and partners will continue 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. MPOGI is contemplating on selling its participating interests in SC 53.
Lastly, block operator PXP Energy will continue seismic interpretation of previously un-interpreted 3D PreSDM broadband reprocessed seismic volume over the Linapacan A and B structures and will re-process recently acquired broadband seismic data to formally enter Sub-Phase 3 of SC 74 – Linapacan Block.
Philodrill takes this opportunity to acknowledge the DOE for its continued support and all the members of the various service contract consortia for their active participation in its projects.